There is continuous pressure in the Indian stock market and the trend of decline is not showing any sign of stopping. The selling phase continued in the market on Tuesday also, due to which the main indices Sensex and Nifty came very close to their six-month low. The rise in crude oil prices due to tensions in West Asia and continuous withdrawal of foreign investors (FIIs) weakened the market sentiment. At the end of trading, the fall in big shares of banking, finance and IT sectors further increased the concern of investors.
At the close of Tuesday’s trading session, the Bombay Stock Exchange (BSE) Sensex closed at 72,529.07, down 242.65 points or 0.33%. At the same time, Nifty of National Stock Exchange (NSE) slipped 64.05 points or 0.28% to 22,716.20. Not only in big stocks, but also in smallcap and midcap stocks, all-round selling was seen. A big fall of 1.02% was recorded in Nifty Smallcap 100 and 0.95% in Nifty Midcap 100.
What are the main reasons behind the decline?
There were two main reasons behind this slowdown and selling in the market:
- rising prices of crude oil: Brand crude rose 1.74% to $ 107.1 per barrel in the global market. India imports most of its crude oil needs, hence the possibility of expensive crude increasing inflation, increasing import bill and adversely affecting the margins of companies has increased.
- Withdrawal of foreign funds: In the environment of global uncertainty, foreign portfolio investors have continuously withdrawn money from the Indian market, due to which there is pressure on stocks.
Top Losers and Gainers Stocks
According to Nifty closing data, the fastest selling was seen in IT and consumer durables stocks. Titan (-3.00%), Wipro (-2.95%), HCL Tech (-2.44%), Tech Mahindra (-2.06%), TCS (-1.85%) and UltraTech Cement (-1.78%) closed with heavy losses. Reliance Industries (-1.30%) and ICICI Bank (-0.75%) were also in the red. On the contrary, Adani Enterprises (+5.01%), Adani Ports (+4.49%), Dr Reddy’s (+2.53%), Sun Pharma (+1.47%), Infosys (+1.22%) and Kotak Bank (+1.11%) closed in the green.
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SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
