The benchmark stock indices experienced a downturn on Tuesday, primarily driven by a decline in IT stocks. The S&P BSE Sensex retreated by 0.3%, concluding at 74,482.78, while the NSE Nifty50 settled 0.2% lower at 22,604.85 points.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., noted, "Profit-taking in the last hour of trading saw benchmark Nifty ease from its fresh record highs, while Sensex too lost momentum after coming close to breaching its previous high level, as investors curbed their equity positions ahead of the US FOMC meet outcome." He further explained that selling pressure in banking, IT, metals, and oil & gas sectors led to a reversal in trends, although robust buying activity was observed in automobile and realty stocks, mitigating some of the downside.
Despite the day's decline, both indices recorded gains of 1.2% and 1.1% respectively for the month, buoyed by strong performances from major companies like Reliance Industries, ICICI Bank, and Wipro.
During the session, the Nifty IT index dipped by 1.1%, with investors closely monitoring the Federal Reserve's upcoming policy meeting, which could influence interest rate decisions.
The Nifty financials sub-index, on the other hand, continued its upward trajectory, climbing 0.1% to reach a record high of 21,841.15, offsetting some of the losses incurred during the day.
Shares of Indian Oil Corporation (IOC), the country's leading refiner, witnessed a nearly 5% decline after its quarterly profit more than halved. Consequently, the Nifty oil and gas index slipped by 0.6%, finishing flat and emerging as the top loser in the Nifty energy index.
Seven out of the 13 major sectoral indexes concluded in negative territory.
Indian markets will remain closed on Wednesday for a public holiday and will resume trading on Thursday, May 2nd.
