Mumbai (Maharashtra) [India], May 7 : After a positive start on Tuesday, the Indian stock market encountered selling pressure, leading to both indices slipping into the negative territory by the time the closing bell rang.
The Nifty declined by 140 points to close at 22,302 while BSE Sensex also plummeted by 383 points to close at 73,511 points.
The Nifty Midcap 100 saw substantial losses, ending the trading session down by 987.75 points at 49,674.45.
"It was a weak day yet again for Indian bourses, marked with enhanced volatility and continued FII selling. The net sales by FIIs in the secondary market in April has continued in May as well," said Ajay Bagga, market and banking expert.
He added, "Markets are reducing exposure in the light of the June 4 results announcement for the national elections. Despite positive global cues, the lack of any strong domestic earnings upgrades means that markets could stay sideways till the 4th of June".
Bank Nifty also declined for the second consecutive day by 609 points and closed at 48,285 points.
"Bank Nifty is showing more profit booking as compared to Nifty. In the last trading session, it has closed below 48400, now we can expect a fall toward the 47700 level. 49300-49500 is an immediate resistance area; above this, we can expect a move towards the 50000 level," said Pravesh Gour, senior technical analyst, Swastika Investmart Ltd.
In the Nifty 50 list 15 shares closed in advance while 35 shares closed with decline and Hindustan Unilever, Tech Mahindra, Britannia, Nestle India and TCS made into the list of top gainers while Bajaj auto, Power grid, ONGC, IndusInd Bank and Hindalco made into the list of top losers of the day.
The Nifty has declined around 500 points while Sensex has tanked around 1500 points since Friday. In the currency market, dollar strengthened against the yen, while commodities like oil and gold remained relatively stable amidst geopolitical tensions in the Middle East.
"In global markets, shares traded near one-month highs on Tuesday, buoyed by renewed confidence in potential U.S. interest rate cuts. Last week witnessed a significant shift in investor sentiment regarding the U.S. interest rate outlook, with market pricing indicating the likelihood of multiple rate cuts by the end of 2024," said Varun Aggarwal, MD, Profit Idea.
Additionally, concerns over adverse weather conditions in key agricultural regions contributed to wheat, corn, and soybean prices trading at multi-month highs.
In the morning the stock markets commenced trading on a positive note, as both the Sensex and Nifty indices saw gains, aligning with global market trends. Sensex opened 74.96 points up at 73970.50, while Nifty 50 opened 35.70 points higher at 22478.40.
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