The stock market faced pressure on Tuesday, with the Sensex and Nifty closing down by nearly half a percent. Banking, real estate, defense, and FMCG sectors were weak, while buying was seen in pharma, auto, and IT stocks. Midcap also saw a decline, but smallcap closed flat.
Stock market updates: The domestic stock market closed under pressure on Tuesday. The Sensex fell 368 points to close at 80,236, and the Nifty fell 99 points to close at 24,487. Weakness was observed in the banking sector, especially in the shares of HDFC Bank and ICICI Bank. Real estate, defense, and FMCG sectors were also weak, while buying remained in pharma, auto, and IT stocks. The pressure on financial stocks was the main reason for the market decline.
What was the reason for the pressure in the market?
In Tuesday's session, the Sensex fell 368 points to close at the level of 80,236, while the Nifty slipped 99 points to close around 24,487. The Nifty Bank Index saw the biggest decline, falling by about 1 percent. The midcap index also saw a decline, while the smallcap index remained almost stable. This pressure in the market was mainly due to the weak performance of the banking, real estate, defense, and FMCG sectors.
In the banking sector, two major companies, HDFC Bank and ICICI Bank, fell sharply, causing the most damage to the financial sector. Apart from this, real estate and defense stocks also faced selling pressure. Investors took out risky stocks from their portfolios to reduce risk, which increased the selling trend in the market.
Sectoral performance: Balance of buying and selling
While the banking and real estate sectors were weak, investors bought in the pharma, auto, and IT sectors. Alkem Labs' quarterly results came in better than expected, due to which its share closed 7 percent higher. Granules India and HAL also won the confidence of investors with b results.
The Oil & Gas, Energy, and Metal indices also showed gains, which brought some positivity to the market. This indicates that investors have maintained confidence in some sectors and are looking for opportunities even amid recession fears.
What happened in major stocks?
Out of the 50 stocks of Nifty, 30 closed in the red. Banking giants HDFC Bank and ICICI Bank created the most pressure. In the pharma sector, Alkem Labs gained 7 percent on the back of better quarterly results. Granules India and HAL also performed bly, which is a good sign for investors.
In midcap stocks, SJVN, JSL Stainless, Biocon, and India Cements were major gainers. On the other hand, Astral's stock fell 8 percent due to weak results. Weakness was also seen in Supreme Industries and Muthoot Finance, where shares of Muthoot Finance closed 3 percent lower.
Impact of weak results
RVNL's results were disappointing, due to which its stock fell 5 percent. The company's margin saw a decline of 400 basis points on an annual basis. Apart from this, after the debenture repayment, there was a tremendous increase in the shares of Jayaswal Neco and it closed 14 percent higher.
It is clear that quarterly results have had a profound impact on investor sentiment in the market. Buying occurred in stocks with better results, while selling pressure remained in stocks with weak performance.
