In Short:
Indian equity markets saw significant losses on Tuesday, with the Sensex down 401.95 points and the Nifty dropping 157.20 points due to heavy selling in various sectors. A large number of stocks declined, with 407 hitting lower circuit limits. Banking stocks were particularly affected, while ICICI Bank gained slightly. Foreign Institutional Investors continued selling, despite some support from domestic investors.
Indian Markets Take a Dive
In a rather tumultuous afternoon on Tuesday, Indian equity benchmarks decided to play a game of “who can lose more?” The **Sensex** plunged by 401.95 points, landing at 80,749.32, while the **Nifty** fell by 157.20 points to settle at 24,623.90 around 12:30 PM. The decline was largely driven by a wave of selling across a multitude of sectors.
Market Breadth Takes a Hit
The market breadth painted a gloomy picture, with a staggering 3,209 stocks on the decline compared to a mere 643 advances on the **BSE**. The broader market was particularly impacted, as 407 stocks hit their lower circuit limits, while only 181 stocks managed to reach their upper circuits.
Nifty Indices Feeling the Pressure
The **Nifty Next 50 index** slid sharply by 1.85 percent, winding up at 71,928.70. Similarly, the **Nifty Midcap Select index** dropped by 0.96 percent, closing at 12,572.80. Banking stocks weren’t spared either, as the **Nifty Bank index** fell 0.83 percent to 51,533.60.
Top Performers in Rough Waters
Amidst this sea of red, **ICICI Bank** managed to shine as the top gainer among Nifty stocks, seeing a rise of 1.24 percent. Other notable performers included **Nestle India** at 0.88 percent and **UltraTech Cement** at 0.65 percent. Additionally, **Hindustan Unilever** and **ITC** contributed gains of 0.44 percent and 0.41 percent, respectively.
Leading the Decline
On the flip side, **Adani Enterprises** was at the forefront of the downtrend, experiencing a drop of 2.78 percent. Close behind was **Mahindra & Mahindra**, which fell by 2.54 percent. Other stocks feeling the heat included **Bharat Electronics Ltd (BEL)** down 2.44 percent, and **State Bank of India** and **Tata Motors**, which slipped by 2.14 percent and 2.12 percent, respectively.
Market Highlights
Despite the general downturn, some good news emerged with **155 stocks** hitting their 52-week highs while 117 stocks touched their 52-week lows. The **Nifty Financial Services index** held up better than others, with a minor decline of 0.60 percent, closing at 23,811.35.
External Influences
The market’s weakness can be attributed to continued selling by **Foreign Institutional Investors (FIIs)**, who offloaded a staggering ₹2,261 crore worth of Indian equities on October 21. However, this sell-off was somewhat countered by domestic institutional investors (**DIIs**) who stepped in to purchase worth ₹3,225 crore.
Trading Volume and Market Sentiment
Trading volumes remained quite active, with 3,952 stocks being traded on the **BSE**. Market participants are keenly watching the movement of **US Treasury yields**, which recently spiked to 4.18 percent, and are also anticipating quarterly results from several major companies including **Bajaj Finance**, **Zomato**, and **ICICI Prudential**.
