A day after a surge in the wake of the India-Pakistan ceasefire, the Sensex fell by more than 1,000 points and Nifty 50 fell by over 250 pointsread moreThe markets fell on Tuesday after registering a major surge the previous day in the wake of the India-Pakistan ceasefire.The BSE Sensex was down 1,013 points and Nifty 50 was down 259 points at 10:30 pm, according to CNN-News 18.Analysts have said that yesterday’s surge did not involve institutional investors and their activity in Indian markets is bound to be subdued for some time. They have also said that markets are revising themselves as investors went overboard yesterday.STORY CONTINUES BELOW THIS ADVK Vijayakumar, Chief Investment Strategist, Geojit Investments, told Financial Express, “After the sharp surge in the market yesterday, mainly in response to the ceasefire, it is time to take stock and try to understand the likely direction of the market, going forward. It is important to understand that the sharp 916-point surge in Nifty was not caused by institutional activity. The combined FII and DII buying yesterday was only Rs 2,694 crores. This means the market surge was triggered by short-covering and HNI plus retail buying. This implies that institutional activity is likely to remain subdued in the coming days which may constrain the continuation of the rally.”More from India
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J&K: Schools in non-border districts reopen but education institutions in Jammu, Rajouri, Poonch remain shutSiddarth Bhamre, the Head of Institutional Research at Asit C. Mehta Investments Intermediates, told the newspaper that the “run-up yesterday was significantly more than expected”.Bhamre said, “As a result we are seeing some amount of profitbooking and mean reversion in the market after going overboard yesterday. However, the broad trend should remain intact, and there is still a lot of liquidity in the market. We may see participation from key sectors that did not participate completely yesterday.”The newspaper further noted that even though some sectors, such as defence, is up, tech and steel sectors are down.The steel sector is under pressure after India proposed retaliatory tariffs against US tariffs on steel and aluminium.However, defece stocks are up on Tuesday after Prime Minister Narendra Modi in a speech on Monday hailed make-in-India. The Nifty India Defence index was up nearly 4 per cent.Tagsnifty fiftySensexEnd of Article
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Sensex crashes by 1,000 points, Nifty too slumps day after sharp surges
