Stock Market Today: Sensex, Nifty Tumble For Third Day Running As Geopolitical Concerns Unsettle Investors

Overseas investors stayed sellers on Tuesday for the third consecutive day. Foreign portfolio investors sold stocks worth Rs 4,468.09 crore, according to provisional data from the National Stock Exchange. This comes as benchmark stock indices extended losses for the third consecutive session as geopolitical concerns weighed on investor sentiments.

Domestic institutional investors remained net buyers for the sixth day and mopped up equities worth Rs 2,040.38 crore, the NSE data showed.

Foreign institutions have been net buyers of Rs 13,067 crore worth of Indian equities so far in 2024, according to data from the National Securities Depository Ltd., updated till the previous trading day.

The local currency weakened by 9 paise to close at 83.54 against the U.S. Dollar.

Intraday rupee hits all-time low of 83.555

It closed at 83.45 a dollar on Monday.

Source: Bloomberg

India's benchmark stock indices extended losses for the third consecutive day on Tuesday as geopolitical concerns weighed investor sentiments. The indices were dragged by banks and information technology stocks.

The Nifty hit an intraday low of 22,079.49, and the Sensex touched 72,685.03 earlier in the session.

The NSE Nifty 50 settled 124.6 points, or 0.56%, lower at 22,147.9 and the S&P BSE Sensex declined 456.1 points, or 0.62%, to end at 72,943.68.

There was no relief for the bulls, as the index commenced the session lower but as the day progressed, a relief rally was seen, according to Aditya Gaggar, director, Progressive Shares. "However, another round of selling dragged the Index further lower but towards the end."

The Indian rupee recorded its lowest-ever level against the US dollar on Tuesday. The domestic currency weakened 9 paise intraday to close at Rs 83.54 against the U.S. Dollar. The yield on the 10-year bond was trading 0.25% higher at 7.19%.

Stocks in the Asia-Pacific region ended lower losses on Tuesday, even after China GDP beat expectations to expand at 5.3%. Hong Kong's Hang Seng fell by 2.12%, while S&P ASX closed lower by 1.81%.

Brent crude was trading 0.06% lower at $90.05 a barrel. Gold was lower by 0.54% at $2,370.57 an ounce.

If Bank Nifty sustains above the 47,500-47,400 range, it could experience a pullback towards the 48,000 level, according to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities. "However, a break below 47,300 on a closing basis might trigger further selling pressure, potentially driving the index down towards the 46,500 level."

Shares of Infosys Ltd., ICICI Bank Ltd., Tata Consultancy Services Ltd., Larsen & Toubro Ltd. and Bajaj Finance Ltd. were negatively contributing to changes in the Nifty.

Whereas, HDFC Bank Ltd., Hindustan Unilever Ltd., Reliance Industries Ltd., Titan Co. and Eicher Motors Ltd. added positively to the index.

The sectors on the NSE ended mixed, with Nifty PSU Bank and Nifty IT declining the most. Nifty Media and Nifty Oil and Gas rose the most by 1.74% and 0.77%, respectively.

Broader markets outperformed benchmark indices. The S&P BSE Midcap ended 0.20% higher, and the S&P BSE Smallcap settled 0.58% higher.

A quick recovery from the lower levels helped the mid and smallcaps to outperform the Nifty50, Gaggar said. "A reversal can be expected as the index has formed a spinning top candlestick pattern at its long-term trendline support which is coupled with a 50DMA."

On BSE, 10 sectors declined and 10 advanced out of 20. The S&P BSE IT index was the worst performing sector, and the S&P BSE Oil and Gas sector emerged as the top performing sector.

Market breadth was skewed in favour of the buyers. Around 2,256 stocks advanced, 1,565 stocks declined, and 112 remained unchanged on BSE.

• GQG raises stake in Patanjali Ayurveda to 11.5% as of March 31, 2024 from 3.3% as of previous quarter.

Source: Exchange filing

• The local currency weakened by 9 paise to trade at 83.54 against the U.S. Dollar.

• It closed at 83.45 on Monday.

Source: Bloomberg