The Indian stock market saw a mixed session on Tuesday with the Sensex trading above 76,800 and the Nifty hovering near the 24,000 mark. While major stocks like BEL, Power Grid Corp, NTPC, SBI, HDFC Bank, and Bharti Airtel faced declines of up to 3.5%, the IT sector shone with Tech Mahindra, Infosys, HCL Tech, and Eternal gaining up to 3%.
Broader markets displayed mixed trends as the Nifty Midcap 100 rose by 0.2%, whereas the Smallcap 100 experienced a decline following a sharp rally in the previous session. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that positive factors such as the correction in Brent crude prices to $87 and improved monsoon conditions could support the market's mild rally, albeit with some volatility.
In the global context, Asian markets faced downturns with South Korea's Kospi plunging 7.89% due to increased competition from China and a significant drop in SK Hynix's US-listed shares. The broader MSCI Asia Pacific Index fell by 2.92%, with technology stocks suffering the most. Meanwhile, US stock futures showed a mixed response as investors awaited the Federal Reserve's rate decision.
“Several positive factors could help sustain the market's mild rally, although he expects the gains to be uneven, with occasional profit booking and corrections.”
VK Vijayakumar, Chief Investment Strategist at Geojit Investments
Oil prices saw a decline of 1% as diplomatic efforts between the US and Iran raised hopes for eased tensions in the Middle East. Brent crude futures fell to $88 a barrel, while US West Texas Intermediate crude dropped to $82.
Foreign Institutional Investors sold equities worth over Rs 822 crore, while Domestic Institutional Investors were net buyers at Rs 2,329 crore. The Indian rupee opened 0.16% higher at 95.76 against the US dollar.
Background
The market's performance is being closely watched as investors anticipate the Federal Reserve's upcoming rate decision, which could influence global market trends. Additionally, the IT sector's robust performance provides a positive outlook for the Indian market.
Looking ahead, market analysts suggest that the ongoing pullback could continue if the Nifty sustains above 23,800. However, a break below this level might trigger renewed selling pressure. Investors are advised to consider fresh buying selectively on declines towards the 23,800-23,700 support area.
