Sensex, Nifty Fall After Hitting Record High As IT Stocks Drag: Midday Market Update

India's benchmark equity indices traded lower through midday on Tuesday after hitting a fresh record high, dragged by losses in IT stocks.

As of 12:05 p.m., Nifty 50 rose 65 points, or 0.03%, to 22,098.10, and the Sensex traded flat at 73,327.10. The Nifty and Sensex hit life highs of 22,124.15 and 73,427.59, respectively, early in the day.

"We have observed that markets tend to perform better six months ahead of election results being announced," said Apurva Sheth, head of market perspectives and research at SAMCO Securities.

"As 2024 is an election year, markets should remain buoyant, but one must also expect volatility to shoot up as we get closer to the election results."

Shares of Titan Company Ltd., Maruti Suzuki Ltd., Bharat Petroleum Corp Ltd., Larsen & Toubro Ltd., and Tata Motors Ltd., contributed the most to the gains in Nifty.

While those of Infosys Ltd., HCL Technologies Ltd., NTPC Ltd., Tata Consultancy Services Ltd., and Reliance Industries Ltd., weighing on the index.

Sectoral indices were mixed with Nifty Oil & Gas gaining the most by nearly 1% and Nifty Realty lost 1.23%.

The broader markets outperformed their major peers, with the S&P BSE MidCap rising 0.18% and the S&P BSE SmallCap gaining 0.22% through midday on Tuesday.

Twelve out of 20 sectors compiled by BSE Ltd. advanced, while eight sectors declined. S&P BSE Consumer Durables rose the most.

Market breadth was skewed in favour of the sellers. Around 1,889 stocks fell, 1,775 stocks rose, and 136 remained unchanged.