Bulls Take A Pause After Sharp Rally

Mumbai: Stock markets tumbled on Tuesday with benchmark Sensex falling by 1,282 points due to profit-taking in IT, auto and private banking shares a day after a record rally.

The 30-share BSE barometer tanked 1,281.68 points or 1.55 per cent to settle at 81,148.22 with 25 of its constituents closing with losses and five with gains. During the day, it fell sharply by 1,386.21 points or 1.68 per cent to 81,043.69. The broader Nifty of NSE dropped 346.35 points or 1.39 per cent to 24,578.35. The market capitalisation (mcap) of BSE-listed companies fell by Rs1.46 lakh crore to Rs4,31,10,787.02 (Rs431.10 lakh cr or $5.08 trn).

“The domestic market witnessed profit booking on Tuesday, following Monday’s sharp rally. The relief-driven surge—fuelled by easing global and domestic risks, including a reduction in trade war tensions and Indo-Pak geopolitical stress—appears to be taking a breather,” said Vinod Nair, head (research), Geojit Investments Ltd.

Broader markets closed with gains on Tuesday with the BSE smallcap gauge jumping 0.99 per cent and midcap index by 0.17 per cent. “Profit-taking was evident across the board, with IT, FMCG, and auto sectors emerging as the top losers,” said Ajit Mishra, Sr V-P (research), Religare Broking Ltd.