Markets Look Set To Break Away From Their Rally, Sensex, Nifty Begin Trading In Red

The Sensex took a hit of over 50 points and slipped under 81,600 as of 9:01 AM, while the Nifty fell close to 40 points and stood below 24,950 in the pre-open session.

The GIFT Nifty remained muted as it slipped close to 50 points and stood at 24,965, around 8:30 AM today.

Source : ABPLIVE AI

Dalal Street broke away from its rally and looked set to break its 4-day green streak on Wednesday. Both benchmarks started trading today on a muted note. The BSE Sensex tanked almost 100 points and tested 81,550, and the NSE Nifty50 clocked a fall of over 30 points and started the session below 24,950, as of 9:15 AM.

On the 30-share Sensex, Bharti Airtel, NTPC, Eternal, Infosys, and BEL stood among the gainers. Meanwhile, the laggards included Kotak Mahindra Bank, HCL Tech, Tata Motors, and Bajaj Finance were some of the laggards.

In the broader markets, the Nifty Financial Services declined 0.42 per cent. Sectorally, the Media index witnessed a fall of 0.74 per cent.

The GIFT Nifty remained muted as it slipped close to 50 points and stood at 24,965, around 8:30 AM today. The Sensex took a hit of over 50 points and slipped under 81,600 as of 9:01 AM, while the Nifty fell close to 40 points and stood below 24,950 in the pre-open session.

 

VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, explained, "The rally in the Nifty came in response to the unexpected announcements relating to GST reforms, which are likely to happen before Diwali. The market has been responding to the potential demand boost to sectors like automobiles, FMCG, insurance, and select financials, which are expected to benefit from the GST rationalisation. Improvement in India-China relations has also contributed to the rally. However, there is no scope for a sustained rally since the August 27th deadline for the 25 per cent secondary tariff on India is fast approaching."

 

Foreign Institutional Investors (FIIs) dumped Indian equities worth Rs 634.26 crore on Tuesday, according to exchange data. The global oil benchmark Brent crude surged 0.11 per cent to touch $65.86 a barrel.

How Did Markets Fare On Tuesday?

Extending their winning streak for the fourth straight session, Indian equity benchmarks ended Tuesday on a positive note, led by gains in Reliance Industries and Tata Motors. The BSE Sensex advanced 370.64 points, or 0.46 per cent, to close at 81,644.39, while the NSE Nifty rose 103.70 points, or 0.42 per cent, to settle at 24,980.65.

Market sentiment remained upbeat on expectations of major reforms in the Goods and Services Tax (GST) framework by Diwali, coupled with easing geopolitical concerns. Optimism was further supported by India’s recent sovereign rating upgrade, which has strengthened investor confidence.