Market ends weak amid selling across sectors
At close, the Sensex was down 820.97 points or 1.03% at 78,675.18, and the Nifty was down 257.80 points or 1.07% at 23,883.50.
The bullishness in Indian stock indices remained as they touched another fresh all-time high Tuesday morning.
Sensex and Nifty were 0.2 per cent higher each this morning. Notably, Sensex crossed the 65,000 mark for the first time this week. Last week, the indices accumulated around 3 per cent gains each, their highest in months.
“The unabated surge in FPI (foreign portfolio investors) inflows will keep the market resilient. The sharp U-turn in FPI investment from Rs 34,146 crores of selling in the first two months of this year to Rs 90,986 crores of buying in the last two months has turned the market decisively in favour of bulls,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fourth straight month, according to data from the National Securities Depository (NSDL).
FPIs bought Indian stocks worth Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, and Rs 47,148 crore in March, April, May, and June, respectively, data showed.
“The surge in the market during the last four sessions was led mainly by the HDFC twins and RIL with some support from ITC. It is important to remember that these stocks have strong and improving fundamentals,” Vijayakumar added.
He further cautioned investors that optimism was fine but there was no room for exuberance since valuations did not allow an unabated rally.
According to Om Mehra, Equity Research Analyst, Choice Broking, the market may consolidate amid a big surge, although stock-specific movement may persist.
“Investors should remain cautious currently taking aggressive long or short positions,” Mehra added.
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