After a heavy day of losses, Tuesday was a turning point for most Asian markets except for the Indian market. The first half of the day seemed like a dead cat bounce while the second was disappointing for many. Sensex was down 0.21% and closed below the 79,000 level while Nifty dropped 0.26% and was below 24,000 level.
Gainers and losers
Among Sensex stocks, HDFC Bank, Bharti Airtel, SBI, ICICI Bank, Axis Bank, and Bajaj Finance were the main drags on the index. In contrast, L&T, Reliance Industries, HUL, and HCL Tech ended in positive territory.
Sector-wise, Nifty Financial Services and PSU Bank closed over 1% each. Nifty Auto, Healthcare, Consumer Durables, and Oil & Gas also ended in the red. In the broader market, Nifty Midacap100 and Nifty Smallcap100 fell 0.4% and 0.6%, respectively.
Textile stocks like Gokaldas Exports, Century Enka and SP Apparels also closed 13-20% higher as investors believe that the Bangladesh crisis will boost textile exports from India.
Experts View
Vinod Nair, Head of Research, Geojit Financial Services, said: “The domestic market tried to rebound mirroring the Asian markets. but, momentum was short-lived. Investors are watching the appreciating Yen, weak US economic data, and rising geopolitical tensions. They are now exercising caution and shifting towards defensive sectors such as FMCG, IT, and pharma. The market is looking forward to the decline of crude prices and potential rate cuts by the US Fed & RBI to mitigate the downturn risk.”
Aditya Gaggar, Director of Progressive Shares, said, “The near-term outlook for Nifty50 turned bearish unless it gives a convincing move above 24,400 while on the downside, 50DMA support i.e. 23,880 will be considered as immediate support.”
