Big game in the stock market! Why did the Sensex suddenly fall after 5 consecutive days of rise?

The ongoing rise in the Indian stock market for the last few days came to an end on Tuesday. The stock markets, which opened with gains in the morning, could not maintain their momentum and at the end of trading both the Sensex and Nifty indices closed in the red. After a spectacular run of five consecutive days, a period of profit-booking was seen among investors today.

Situation of Sensex and Nifty

In today’s trade, the 30-share BSE Sensex closed at 78,180.72 with a slight decline of 104 points (0.13%). At the same time, NSE Nifty also slipped by 0.13% or 31.65 points to the level of 24,398.70. There was selling in shares of 19 out of 30 Sensex companies, while shares of 11 companies closed with gains. Shares of Trent recorded the biggest fall of 12.65% today, while IT sector giants like Infosys, HCL and Tech Mahindra tried to support the market to some extent.

Global markets and other signals

The reason behind the slowness of the market were mixed signals from the global level. There was an atmosphere of uncertainty in Asian markets today. However, a strong rise in tech stocks was seen in the American markets on Monday, the impact of which was visible on Indian IT companies in early trading. On the other hand, the announcement of large-scale layoffs by Microsoft and a slight increase in crude oil prices also affected the market sentiments. Apart from this, the prices of gold and silver have also declined today.

What is the situation for investors?

Given that investors had gained about Rs 9 lakh crore due to the tremendous rise in the market in the last four trading sessions, today’s fall is being seen as ‘profit booking’. Market experts believe that the fundamental structure of the market still remains strong due to the better progress of monsoon and the activity of foreign investors. Now all eyes are on global economic data and quarterly results of companies.