Benchmark stock market indices closed lower on Tuesday as heavyweight stocks such as Reliance Industries (RIL) and HDFC Bank tanked on Dalal Street, dragging markets.
The S&P BSE Sensex declined 376.28 points to close at 85,063.34, while the NSE Nifty50 lost 71.60 points to end at 26,178.70.
Vinod Nair, Head of Research, Geojit Investments Limited, said that domestic equities experienced a correction led by large-cap stocks, with selling in heavyweights like Reliance Industries and HDFC.
“The market reaction was influenced by uncertainties surrounding Venezuela-US crisis and Russian oil imports, coupled with anticipations regarding the upcoming Q3 results,” he added.
ICICI Bank led the gainers, rising 2.87%, followed by Hindustan Unilever, which was up 1.75%. Sun Pharmaceutical Industries gained 1.73%, State Bank of India added 1.33%, and TCS rose 1.28%, supporting the market by the close.
Trent was the worst performer, falling 8.62%. Reliance Industries slipped 4.42%, ITC declined 2.07%, Kotak Mahindra Bank was down 2.02%, and HDFC Bank fell 1.56%, dragging the index lower.
“While most sectors saw profit booking, Pharma, Banking, and IT stood well. Banking stocks found support from positive pre-result business updates. Pharma stocks advanced due to the consistent growth reported by the Indian Pharmaceutical Market (IPM) for December,” said Nair.
“In the near term, market is expected to remain range-bound with mixed optimism regarding the US-India deal uncertainty and Q3 earnings with high expectations,” he added.
Rupak De, Senior Technical Analyst at LKP Securities said that the trend looks likely to remain range-bound in the near term.
“Going forward, a sustained rally may emerge upon a manoeuvring effort by bulls to take the Nifty above 26,300. On the downside, support is placed at 26,000,” he added.
