Indian stock market traded under pressure on Tuesday due to weak signals from global markets and selling pressure in shares of banking and auto sectors. After a weak start, the fall in Sensex and Nifty increased further.
Selling pressure was seen in the Indian stock market on Tuesday amid weak global market signals. Sensex, Nifty remained in red since the start of trading. After a while the fall increased further. Selling in banking, auto and metal shares affected the main lists. Due to this, Nifty fell below the key level of 22,700, Sensex recorded a fall of about 488 points.
Weakness in heavily weighted stocks affected the market situation. Major stocks like HDFC Bank, ICICI Bank and Tata Motors PV were under pressure. Also, Bajaj Finance and Tata Steel shares were sold. On the other hand, investors in pharma and select IT stocks tried to limit the market fall to some extent.
Huge fall in Sensex, Nifty
In early trading on Tuesday, BSE Sensex fell by 488.35 points or 0.67 percent and traded at 72,283.37. NSE Nifty fell 146.05 points or 0.64 percent to 22,634.10. The difference between the rising and falling shares in the market is not big. In early trading, around 920 shares were in profit and 864 shares were in loss. There was no significant change in other 174 shares.
Sales in domestic banking and auto shares along with weak global cues brought additional pressure on the market. Investors' focus is on upcoming economic data, direction of global markets and news related to companies.
Pressure on Tata Motors, HDFC Bank shares
There was weakness in auto sector shares on Tuesday. Selling pressure continued on Tata Motors PV shares. Weakness in auto shares was reflected in sectoral indices. Banking shares are also one of the main reasons for the market fall. Pressure on Nifty increased due to weakness in HDFC Bank, ICICI Bank shares. Similarly, Bajaj Finance also recorded a decline. Sales in banking and financial sector shares had an impact on investor sentiment.
Tata Steel is also under pressure in the metal sector. Due to this, the fall in many big stocks belonging to auto, banking and metal sectors affected the market direction.
Buying in Pharma, IT shares
Despite most sectors in the market being under pressure, buyers were seen in pharma stocks. Dr. Reddy's Laboratories, Cipla were among the main gainers. Bullish trend was seen in selected IT shares. HCL Technologies continues to post profits. Also, buyers were seen in NTPC, Tata Consumer shares. But the rise in these selected stocks could not completely offset the broader market decline.
Nifty Sectoral Index Status
As far as sectoral indices are concerned, almost all the major indices are under pressure on Tuesday. Nifty Pharma was the only one to register gains among the major indices. It increased by about 0.80 percent and reached 26,976.15. In contrast, Nifty IT declined by 0.55 percent, Nifty FMCG by 0.55 percent, Nifty Services by 0.52 percent and Nifty MNC by 0.45 percent. Nifty Bank also traded down by about 0.41 percent.
Apart from this, weakness was seen in the indices related to realty, infrastructure, energy and PSU Bank. This revealed that the pressure on the market in early trading was not limited to a single sector.