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Indian equity benchmarks opened lower on Tuesday, retreating from their strongest rally in over four years; Know why
Stock Market Crash Today
Why Is The Market Falling Today? Indian equity benchmarks opened lower on Tuesday, retreating from their strongest rally in over four years, as investors booked profits following a fragile ceasefire agreement between India and Pakistan over the weekend.
At 9:52 AM, the BSE Sensex was down 931 points, or 1.13%, at 81,498, while the Nifty50 fell 196 points, or 0.79%, to 24,728.
On the Sensex, Infosys, Eternal, Kotak Mahindra Bank, Power Grid, and ICICI Bank led the losses with declines of up to 2%. Meanwhile, Sun Pharma, IndusInd Bank, Bajaj Finance, Tech Mahindra, and Maruti were among the top gainers.
The decline comes a day after the Sensex and Nifty surged nearly 4% in a broad-based rally, triggered by easing geopolitical tensions and supported by buying from foreign and domestic investors. On Monday, FPIs bought equities worth Rs 1,246 crore, according to provisional data.
Expert Views
“Monday’s sharp 916-point Nifty rally was not entirely driven by institutional buying,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit. “The combined FII and DII inflows totaled just Rs 2,694 crore, suggesting the move was largely due to short-covering and buying from HNIs and retail investors.”
He added that the US-China agreement to reduce tariffs for 90 days could support global growth and benefit Indian IT companies due to increased tech spending in the US.
Hardik Matalia, Derivatives Analyst at Choice Broking, said Nifty could find support at 24,800, 24,700, and 24,500, while facing resistance near 25,000, 25,100, and 25,200.
Global Cues
Asian markets tracked overnight Wall Street gains, as the temporary truce in the US-China trade conflict soothed recession fears. Japan’s Nikkei rose 2% to a new multi-month high, while Taiwan and China markets also gained. The broader MSCI Asia-Pacific index (ex-Japan) hit a six-month high. The S&P 500 and Nasdaq had jumped over 3% and 4.3%, respectively, on Monday.
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