The benchmark BSE Sensex continued its downward trajectory for the third consecutive day, shedding 220 points amidst volatile trading on Tuesday. The decline was attributed to profit-taking in sectors such as power, oil, and capital goods, as investors awaited the outcome of the Lok Sabha elections.
Sensex and Nifty performance
The 30-share BSE Sensex concluded the day at 75,170.45, marking a decrease of 220.05 points or 0.29%. Meanwhile, the NSE Nifty settled at 22,888.15, dropping by 44.30 points or 0.19%. Both indices witnessed fluctuations throughout the day, reaching highs and lows amidst market uncertainty.
Market sentiment and analyst outlook
Analysts observed a trend of 'buying on dips and sell on rallies' as investors navigated the uncertainty surrounding the election results. Despite achieving lifetime highs on Monday, the markets experienced a downturn due to significant profit-taking. Vinod Nair, Head of Research at Geojit Financial Services, highlighted the likelihood of continued volatility as the market awaits election outcomes.
Sectoral performance and market trends
Among sectors, defensive segments like pharmaceuticals and FMCG displayed optimism, while mid- and small-cap stocks underperformed. The real estate and power sectors experienced notable declines, while healthcare emerged as the sole gainer. The broader market saw the BSE smallcap gauge decline by 1.09% and the midcap index decline by 0.63%.
Global market trends and oil prices
In international markets, Asian indices closed lower, while European markets traded with mixed sentiments. US markets remained closed on Monday for the Memorial Day holiday. Meanwhile, Brent crude oil prices rose marginally to USD 83.21 per barrel.
Foreign institutional investors activity and monsoon forecast
Foreign Institutional Investors (FIIs) reportedly divested equities worth Rs 541.22 crore on Monday. Additionally, the IMD's forecast of above-normal rainfall in India's core monsoon zone offered a positive outlook for the country's agriculture sector amid ongoing market fluctuations.
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