New Delhi (Agency): In a fluctuating trading session on Tuesday, India’s benchmark Sensex rose by 94 points, extending its gains for the eighth straight day. Meanwhile, the broader Nifty index retreated from its record highs, as investors turned cautious over high valuation concerns.
The 30-share BSE Sensex increased by 0.14% to close at 67,221.13 points. During the trading day, it reached a high of 67,539.10 points. On the other hand, the Nifty ended slightly lower by 3.15 points or 0.02% at 19,993.20. It had reached an all-time high of 20,110.35 points earlier in the day.
Leading firms like Tata Consultancy Services, Larsen & Toubro, Infosys, and ICICI Bank were among the main gainers on the Sensex. In contrast, companies like Power Grid, Tata Motors, and Reliance Industries were among those that did not perform as well.
Vinod Nair, Head of Research at Geojit Financial Services, provided his perspective on the current trends. “The level of pessimism has risen in the stock market, leading to a precautionary approach to book profits. The correction is happening mainly in midcaps, while large caps are maintaining their strength,” he said.
According to Nair, while this cautious trend may continue in the short term, the longer-term outlook remains positive. He attributed this to factors such as “the rise of the domestic economy, surprising upside in corporate earnings, and change in domestic investment patterns.”
In the broader market, small and mid-cap indices experienced declines. The BSE smallcap index dropped by 4.02%, and the midcap index fell by 2.96%. Among sectors, utilities, power, and telecommunication suffered the most, while IT and banking sectors were the gainers.
Asian markets had a mixed performance, with Tokyo closing higher and Seoul, Shanghai, and Hong Kong ending the day lower. European markets also displayed a mix of gains and losses. Meanwhile, in the US, stocks closed positively on Monday.
Foreign Institutional Investors (FIIs) turned buyers on Monday, purchasing equities worth Rs 1,473.09 crore, according to exchange data. The global oil benchmark Brent crude also saw a 0.74% rise to USD 91.31 a barrel.
As investors navigate a complex landscape, caution appears to be the dominant sentiment, especially given concerns about valuation levels. With high stakes and market volatility, all eyes will be on how these indices perform in the days to come.