Markets witnessed a sharp sell-off on Tuesday, with the benchmark Sensex plunging nearly 900 points and the Nifty slipping below the 24,000 mark as investors rushed to book profits amid weak economic data and concerns over global interest rates.
The BSE Sensex closed around 76,200, down 1.16%, while the NSE Nifty 50 fell by a similar margin. The decline came after a strong rally in recent sessions and was led largely by information technology and metal stocks.
Among the biggest losers were Infosys, Tata Consultancy Services (TCS), Wipro and HCL Technologies, as concerns over slowing global technology spending and expectations of higher-for-longer US interest rates weighed on sentiment. The Nifty IT index dropped more than 2%, making it the worst-performing sector of the day.
Metal stocks also came under pressure as global commodity prices weakened. Investors were further unsettled by data showing India’s private-sector growth slowing to a three-month low in June, with services activity touching a 17-month low. Concerns over an uneven monsoon also added to market nervousness.
Not all sectors ended in the red. Pharmaceutical stocks emerged as safe havens, with Sun Pharma, Cipla and Dr Reddy’s Laboratories attracting buying interest. The pharma index outperformed the broader market as investors shifted towards defensive sectors amid uncertainty.
Market experts said profit-booking after the recent rally, foreign investor caution and worries over the US Federal Reserve’s policy outlook combined to trigger the broad-based decline. A stronger US dollar and weakness across Asian markets further dampened sentiment.
Despite the sharp fall, analysts believe domestic market fundamentals remain relatively resilient. However, investors are expected to closely track upcoming economic data, monsoon progress and global central bank signals for direction in the coming weeks. For now, Tuesday’s session served as a reminder that market optimism can quickly give way to caution when economic and global uncertainties resurface.
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