The Indian stock market witnessed a day of significant volatility on Tuesday, with the benchmark indices Sensex and Nifty closing flat as investors adopted a cautious approach ahead of the Reserve Bank of India’s upcoming interest rate decision. Traders attributed the market sentiment to selling pressure in IT stocks, foreign fund outflows, and weak trends in global equities.
The 30-share BSE Sensex managed to register its third consecutive session of gains, edging up by 5.41 points or 0.01 percent to reach a closing value of 62,792.88. Throughout the trading day, the index fluctuated between a high of 62,867.95 and a low of 62,554.21. On the other hand, the NSE Nifty experienced a marginal increase of 5.15 points or 0.03 percent to settle at 18,599.
Several prominent stocks, including Infosys, Tech Mahindra, Tata Consultancy Services, Wipro, Bharti Airtel, HCL Technologies, ICICI Bank, and Nestle, ended the day on a downward trajectory.
In Asian markets, Tokyo exhibited positive gains, while Shanghai and Hong Kong ended the day in the red. Meanwhile, European equity markets traded in negative territory, and the US markets concluded Monday’s session with losses.
“The domestic market experienced profit-booking due to selling pressure in the IT sector. IT stocks witnessed a decline in anticipation of further downward revision in spending. However, a rally in auto and banks helped to recover the losses,” stated Vinod Nair, Head of Research at Geojit Financial Services, highlighting the factors influencing the market.
Market observers will closely monitor the Reserve Bank of India’s MPC meeting for insights into growth and inflation forecasts, as there is a prevailing expectation that the central bank will continue its rate pause. Additionally, global oil benchmark Brent crude recorded a decline of 1.84 percent, settling at USD 75.33 per barrel.
On Monday, foreign institutional investors offloaded equities worth ₹700.98 crore, as per exchange data. During the previous trading session, the BSE benchmark rose by 240.36 points or 0.38 percent to reach a closing value of 62,787.47, while the Nifty advanced by 59.75 points or 0.32 percent to settle at 18,593.85.
