The turbulent trading resulted in a 215.5 point drop in the Nifty at 21,522.1, and an 801.67 point drop in the Sensex at 71,139.9.
Indian Investors
Tuesday investors saw a downward slide in domestic blue-chip indices after a significant increase during the previous trading session. On the closing bell today Sensex shuttered the day 801.67 points lower at 71,139.9, while the Nifty finished the stressful day 215.5 points lower at 21,522.1.
Amid ongoing concerns about high valuations and heightened tensions in the Middle East, market participants seem to have become cautious ahead of the FOMC meeting and the interim budget. The trader’s favorite Nifty Bank whose 12 constituents include SBI, HDFC Bank, and ICICI Bank, finished the day 74.6 points, or 0.16 per cent, lower at 45,367.75.While the Nifty Small Cap 100 concluded 0.23 percent higher, the Nifty MidCap 100 decided to close 0.39 percent lower.
On tuesday bulls lost control of the Street, and the benchmark indices dropped more than 1% as investors exercised prudence in ahead of time of this week’s Interim Budget. Trade in power and FMCG brands caused the markets to drop significantly. Investing in real estate, metals, and oil and gas stocks, however, restricted the losses.
Tuesday’s drop in Indian equities was caused by financials, particularly Bajaj Finance, which pulled the market lower. Index heavyweights Reliance Industries and HDFC Bank also saw profit booking after a spike the day before.
When the overall market value of the businesses listed on the BSE dropped to about ₹375.4 lakh crore from roughly ₹377.2 lakh crore in the previous session, investors lost nearly ₹1.8 lakh crore in a single day.
Titan, Bajaj Finserv, UltraTech Cement, and Bajaj Finance were some of the Nifty basket’s worst losses, dropping between 5.3 and 5.3 percent. on the Contrary, with increases ranging from 1-3 percent, Tata Motors, BPCL, Eicher Motors, and Adani Enterprises were among the top gainers.
Nifty FMCG, Nifty Infra, and Nifty Pharma led the sector in losses. The Nifty Auto, Nifty Bank, Nifty Energy, and Nifty IT indices all had negative closing values. Nifty PSU Bank index and Nifty Metal led gains.
With the Interim Budget approaching, the market is likewise becoming apprehensive. Market participants anticipate some volatility on Budget Day in the domestic market, even if Minister of Finance Nirmala Sitharaman is not anticipated to make any major announcements in the Interim Budget 2024. On Wednesday, President Droupadi Murmu will preside over the budget session. In light of the urgent nature of government business, the session may conclude on February 9, 2024.
Finance Minister Nirmala Sitharaman will introduce the interim union budget on Thursday. Until a government is elected after the Lok Sabha elections, the interim budget usually covers the transitional period’s financial commitments.
Global Markets
Tuesday’s surge in European equity markets helped them reach new two-year highs. These gains were largely driven by Wall Street’s overnight gains, positive business news, and investor evaluations of the interest rate decrease expectations during a busy week for the markets.
With investors anticipating the earnings of some of the IT giants that have propelled the record-breaking run in stocks, US stock futures slipped down. Futures contracts fell by nearly 0.2% following the latest all-time high closing on Wall Street. The S&P 500’s monthly gains as of Monday have increased to 3.3%, while the Nasdaq 100 has increased by 4.6%.
As of 09:25 GMT, the pan-European STOXX 600 index was up 0.3%, rising for the fifth session in a row.Kesko, a Finnish retailer, jumped 9.6% to top the benchmark index after overtaking earnings estimates for the fourth quarter. Ambu, a Danish manufacturer of medical equipment, gained 5.6% on the back of better-than-expected first-quarter profits.
