NEW DELHI: Domestic equity market failed to capitalise on Monday’s gain and fell sharply on Tuesday.
Tracking domestic and global cues, the BSE Sensex tumbled more than 1,000 points from day’s high and closed the day at 71,139.90, down 801.67 points or 1.1% from previous day’s closing. The NSE Nifty50 index lost over 200 points or 1% to close at 21,522.10.
In the broader market, BSE Midcap index shed 0.5% and Smallcap index ended on a flat note. The foreign institutional investors (FII) turned net sellers again as they offloaded shares (net) worth Rs 1,950 crore on Tuesday.
“Selling intensified towards the fag end as investors further slashed their positions in key stocks ahead of the Budget while weakness in several Asian indices also contributed to the overall fall,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
“With just one day left for the Budget, investors want to play it safe although there would not be any big-bang announcement by the government in this budget. Focus would rather shift to US Fed policy but indications are that it may maintain status quo on interest rates, which could unsettle investors further,” added Mehta.
Top losers on the Nifty50 pack were Bajaj Finance, Titan, UltraTech Cement, NTPC and Bajaj Finserv. Among sectors, except realty and PSU Bank, all other indices ended closed the Tuesday session with a cut. Capital goods, FMCG, pharma and power sector fell most on Tuesday.
Vinod Nair, Head of Research, Geojit Financial Services, said that investors exhibited a reversal in strategy, adopting a cautious approach in anticipation of the upcoming FOMC meeting and interim budget amid persistent concerns regarding elevated valuations and escalating tensions in the Middle East.
Nair added that the trend weakened in EMs as liquidation order for a major Chinese real estate firm dampened the sentiment.