Sensex fell roughly 80 points, signaling weak Asian stock trends and receding global interest rate expectations. Nifty dropped, with 28 scrips in negative territory. The Nifty rose for five straight sessions, setting a record high.
On Tuesday, Sensex fell roughly 80 points as Asian stocks fell and prospects of early interest rate cuts faded.
The 30-share Sensex fell 0.11 percent or 79.66 points to 72,628.50 points after five straight gains. Mahindra & Mahindra fell nearly 1%.
The wider Nifty fell 0.15 percent or 34.15 points to 22,088.10 points. As many as 28 Nifty scrips were negative.
Asia markets fell below 1-1/2 month highs on Tuesday after a larger-than-expected interest rate cut in China failed to thrill investors jaded by the lack of stimulus. After reaching an intraday high, Nifty rose for the fifth straight session “HDFC Securities Head of Retail Research Deepak Jasani remarked.
Nifty closed at an all-time high of 22,122.25 points on Monday, up 81.55 points or 0.37 percent, while Sensex rose 281.52 points or 0.39 percent to 72,708.16 points.
On Monday, global shares fell as hopes of early interest rate reduction faded and US markets were closed.
“European markets and the FTSE were mixed on Monday in London, as the fallout from last week’s UK GDP data — and the news that the UK fell into a recession at the end of last year — continues to reverberate,” said Jasani.
According to exchange statistics, Foreign Portfolio Investors (FPIs) sold shares worth Rs 754.59 crore on Monday as the local market rose for the sixth straight session.
Jasani said markets may correct or consolidate before Nifty prepares for the next up move and that 22,187 might provide resistance and 21,954 support.
Conclusion
The Sensex fell roughly 80 points to start the day, signaling weak Asian stock trends and diminishing prospects of early global interest rate reduction. The wider Nifty lost 0.15 percent to 22,088.10 points. Asian shares fell below 1-1/2 month highs on Tuesday, as the Nifty rose for the fifth straight session on Monday. US markets were closed and anticipation of early interest rate cuts receded, hurting global shares. Foreign Portfolio Investors sold domestically. Markets may correct or settle before Nifty rises again.
