Despite strong growth in the American stock market on Monday, the Indian market showed a decline on Tuesday. Following trading, the 30-stock Sensex index closed at 74,529.08 points, falling by 329.91 points, or 0.44%. Meanwhile, the Nifty 50 decreased by approximately 85 points, amounting to 0.36%, and finished at 23,329.00.
On Tuesday, the trading session of the Indian stock market started promisingly, but then a gradual decline was observed. At one point, Nifty dropped to 23,285.75. Nifty opened at 23,454.05 and reached a high of 23,489 points during trading.
The unexpected change in investor sentiment in the Indian market, despite positive signals from global markets, surprised them. Even with falling crude oil prices, on September 22, selling pressure was observed in the Indian stock market. On the second day of the week's trading, the market closed in negative territory due to sell-offs in the IT, banking, and consumer goods sectors.
On the day of the weekly expiry, Nifty Sensex fell by approximately 600 points from its daily high, causing Nifty to drop below 23,300. The Nifty Midcap 100 and Nifty Smallcap 100 indices also closed in the red, with most key sector indices remaining negative on Tuesday. The total market capitalization of companies listed on BSE fell by more than 200 billion rupees, which means investors lost 200 billion rupees.
Nevertheless, some stocks showed good growth. Among them were a rise of Kol India by approximately 3.2%, an increase in Indigo by 1.8%, an increase in Eternal by 1.8%, and a strengthening of Titan shares by approximately 1%.
Speaking of the main falling stocks, financial and consumer stocks exerted the greatest pressure on the market. Bajaj Finserv fell by 1.4%, Tata Consumer dropped by 1.6%, Trent fell by 1.2%, and Bajaj Finance shares showed a decrease of 1.2%.
The index declined due to a broad sell-off in the IT, banking, financial services, and capital goods sectors. Despite the price of Brent Crude falling to approximately $100 per barrel for four consecutive sessions, the market could not recover.
The main reasons cited for the market decline are the withdrawal of funds by foreign investors and geopolitical uncertainty, which continue to affect market sentiment. Additionally, concerns remain regarding inflation and import costs.