May 28th 2024.
On Tuesday, the stock market in Mumbai saw a decline as the Sensex and Nifty indices closed lower for the third consecutive day. The day was marked by high volatility as investors chose to take profits amidst uncertainty surrounding the results of the Lok Sabha polls. The 30-share BSE Sensex, after experiencing fluctuations between gains and losses, finally ended at 75,170.45, down by 220.05 points or 0.29%. Throughout the day, it reached a high of 75,585.40 and a low of 75,083.22. Similarly, the NSE Nifty dropped by 44.30 points or 0.19% to close at 22,888.15, despite initially starting on a positive note.
Among the companies listed on the Sensex, Power Grid, NTPC, Tech Mahindra, Bharti Airtel, Tata Motors, IndusInd Bank, Reliance Industries, Kotak Mahindra Bank, and Maruti were among the ones that saw a decline in their stock value. On the other hand, Asian Paints, Wipro, JSW Steel, Hindustan Unilever, Bajaj Finserv, and Mahindra & Mahindra were among the top gainers of the day.
Vinod Nair, Head of Research at Geojit Financial Services, stated that the Indian market showed a slight consolidation after the recent surge in stock prices. He also mentioned that the volatility caused by the uncertainty surrounding the election outcome is expected to continue.
The previous day, the Sensex and Nifty had reached record high levels due to the rise in the auto, banking, and IT sectors. However, towards the end of the day, investors decided to book profits, resulting in a negative trend in the market. Analysts noted that while mid and small-cap companies underperformed, defensive sectors like pharma and FMCG remained optimistic.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong all saw a decline in their market indices. In Europe, the markets were trading on a mixed note. The US markets were closed on Monday in observance of the Memorial Day holiday.
Meanwhile, the global oil benchmark Brent crude saw a slight increase of 0.13% to reach $83.21 a barrel. According to exchange data, Foreign Institutional Investors sold equities worth Rs 541.22 crore on Monday.
In other news, the IMD (Indian Meteorological Department) announced that the core monsoon zone in India, which covers most of the rain-fed agriculture areas, is likely to receive above-normal rainfall this season.
On Monday, the BSE benchmark ended on a slightly lower note, down by 19.89 points or 0.03% at 75,390.50. However, the market had reached an all-time high of 76,009.68 intra-day, with a climb of 599.29 points or 0.79%. Similarly, the Nifty saw a decline of 24.65 points or 0.11% to close at 22,932.45. During the day, it had reached a new lifetime high of 23,110.80, with a climb of 153.7 points or 0.66%.
In conclusion, despite the initial surge in stock prices, the market saw a decline on Tuesday due to profit-taking by investors. The uncertainty surrounding the election outcome is expected to continue causing volatility in the market.
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