The Indian stock market faced a turbulent trading session on Tuesday as heightened volatility and sustained Foreign Institutional Investor (FII) selling exerted pressure on both the Sensex and Nifty indices.
Despite a positive start, the market succumbed to selling pressure, resulting in both indices closing in the red by the end of the day.
The Nifty index experienced a significant decline of 140 points, settling at 22,302, while the BSE Sensex plummeted by 383 points to conclude at 73,511 points.
The Nifty Midcap 100 segment also witnessed substantial losses, ending the trading session down by 987.75 points at 49,674.45.
Tejas Shah, Technical Research Analyst at JM Financial & BlinkX, noted, "The Nifty lost 140 points over the day to close at 22,303. It started on a negative note in today’s session and remained weak throughout the entire trading session. On expected lines, the markets witnessed a sharp fall / sell off once Nifty breached an inside day or inside bar low of 22,409 in today’s opening trading session. It was clearly a day in favour of the bears."
Shah further explained that the broader markets underperformed compared to the mainline indices, attributing the downturn to the formation of an inside day or inside bar pattern on the daily chart in Monday’s trading session.
Market and banking expert Ajay Bagga commented on the day's performance, stating, "It was a weak day yet again for Indian bourses, marked with enhanced volatility and continued FII selling. The net sales by FIIs in the secondary market in April has continued in May as well."
Bagga highlighted the cautious stance of investors ahead of the June 4 results announcement for the national elections.
He pointed out that despite positive global cues, the lack of significant domestic earnings upgrades could keep the markets sideways until the election results are revealed.
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