Stock Market Highlights: Nifty, Sensex Retreat After Record Rally, End Over 1% Lower

Sensex and Nifty 50 ended the day with losses on Tuesday's trading session. Nifty 50 ended 1.39% lower at 24,578.35 and Sensex closed down 1.55% at 81,148.22.

The losses came after the markets climbed to nearly 4% higher on Monday, followed by easing tension between India and Pakistan and encouraging signals from ongoing US-China trade talks.

Notably, Monday marked the biggest intraday jump since 2021 for both Sensex and Nifty.

"The Nifty opened marginally lower at 24,864 and briefly climbed to an intraday high of 24,973, before witnessing aggressive selling pressure, plunging to a day’s low of 24,560," said Sundar Kewat, technical and derivatives analyst, Ashika Institutional Equity.

On the derivatives front, the bearish bias was evident with only 64 stocks advancing against 157 decliners, "while notable open interest buildup was seen in UPL, Paytm, SRF, IIFL, and Chambal Fertilisers", he added. "Options data revealed strong resistance at the 25,000 call strikes, with put writers accumulating positions at 24,000 and 23,500, further supported by a subdued put-call ratio of 0.69."

In the second trading session of the week, shares of Bharat Electronics Ltd., Hero Motocorp Ltd., Jio Financial Services Ltd. positively contributed to changes in the Nifty 50.

While those of Infosys Ltd., Power Grid Corp., and Eternal Ltd. dragged.

In terms of point contribution Bharat Electronics Ltd. added 10.63 points to Nifty 50, highest in Tuesday's trade. Meanwhile, HDFC Bank Ltd. weighted the most on Nifty 50, with 55.61 points.

On NSE, 12 out of 15 sectoral indices ended in the red. Nifty IT was the worst performing sector as it fell over 2%, followed by Nifty FMCG. Meanwhile, Nifty Defence was the top gainer followed by Nifty Media.

In broader market, BSE MidCap and BSE SmallCap both outperformed benchmark BSE Sensex as they ended higher at 0.13% and 0.96%, respectively.

The market breath was skewed in the favour of buyers as 2,523 stocks advanced, 1,438 stocks declined and 137 stocks remained unchanged on BSE.