Indian Stock Markets Reverse Course After Morning Rally
Indian equity benchmarks surrendered their early advances on Tuesday. The markets closed in negative territory after a promising start to the trading session.
Initial Surge Fades Quickly
The trading day began on a strong note. The benchmark BSE Sensex jumped sharply higher at the opening bell. It gained nearly 380 points in early trade. The index touched an intraday high of 84,258.03 points.
The broader NSE Nifty also moved up significantly. It rose by over 109 points during the initial rally. The Nifty climbed to 25,899.80 points in the morning hours.
Foreign Fund Outflows Trigger Decline
The positive momentum did not last. Market sentiment turned negative as foreign portfolio investors began pulling money out of Indian equities. Sustained selling by foreign funds put downward pressure on key indices.
Heavy selling in major blue-chip stocks accelerated the decline. Large-cap companies across sectors faced intense selling pressure throughout the afternoon session.
Key Factors Behind the Market Fall
Several factors contributed to the market's downward move:
- Foreign Investor Exodus: Continuous outflows from foreign institutional investors weighed heavily on market sentiment.
- Blue-Chip Selling: Significant selling in heavyweight stocks dragged down both the Sensex and Nifty indices.
- Profit Booking: Traders likely booked profits after the initial rally, adding to the selling pressure.
- Global Cues: Weakness in other Asian markets may have influenced domestic investor behavior.
Market Closes Lower
By the end of trading, both major indices had erased all their morning gains. The Sensex finished well below its early peak. The Nifty also closed substantially lower than its morning high.
Market analysts noted that foreign fund activity remains a critical driver for Indian equities. The outflow trend, if it continues, could keep markets under pressure in the coming sessions.
Trading volumes remained healthy throughout the session. The market breadth turned negative as the day progressed, with declining stocks outnumbering advancing ones.
The market reversal highlights the ongoing volatility in Indian equities. Investors remain cautious amid changing global and domestic economic conditions.
