Following a Monday rally that thundered, the Indian stock market opened Tuesday with caution, posting sharp falls across major indices.
On May 13, Tuesday, the Indian stock market corrected sharply as investors preferred to take profits after Monday’s impressive run. The BSE Sensex fell more than 1,000 points until lunchtime, and the NSE Nifty fell 117.2 points to close at 24,807.50.
Monday’s Surge Followed by Caution
Only a day before, on Monday, the markets had seen a historic rally. The Sensex opened close to 1,800 points up, one of the best single-day openings in months. But the momentum was not sustained for Tuesday as traders took a cautious note.
The Nifty 50 opened at 24,864.05, losing 60.65 points or 0.24%, and the Sensex started at 82,249.60, down 180.30 points or 0.22%. While both indices recovered marginally in the session, the initial fall indicated investor caution following Monday’s steep advance.
Why the Market Fell: Profit Booking Takes the Limelight
Market analysts attributed Tuesday’s fall to profit booking as the main reason. Following Monday’s near 3.8% surge in the Nifty, investors considered it a chance to book profits.
Ajay Bagga, a leading banking and market analyst, said to ANI:
The Indian markets rallied on Monday even as FPI and DII activity was subdued. This suggests that the rally was more on account of domestic retail and high-net-worth individual buying. Today’s weak futures indicate the rally may not last unless institutional buying improves.”
Global Factors: US-China Trade Truce Adds Uncertainty
The overall global mood also contributed to today’s market tone. A recent US-China trade agreement resulted in a brief tariff ceasefire between the two economic titans for 90 days. Though it did soothe global markets somewhat, experts say it was more of a strategic reboot and not necessarily an effective solution. Consequently, the trade agreement provided little relief to investment mood.
Sectoral Performance: Pharma Shines, IT Drags
On the sectoral side, Nifty Pharma was the best performer, up 1.2%, while Nifty PSU Bank also moved in positive territory. Most other sectors, however, struggled:
Nifty IT fell more than 1%, a reflection of global tech weakness.
Other indices such as Auto, FMCG, and Metal experienced marginal to moderate losses.
Top Gainers and Losers on Tuesday
Key gainers from the Sensex were:
- Sun Pharma
- IndusInd Bank
- Bajaj Finance
- Tata Steel
Top laggards, meanwhile, were:
- Infosys
- Eternal
- Power Grid
- Kotak Mahindra Bank
- ICICI Bank
- HCL Technologies
- Tata Consultancy Services (TCS)
- Nestle India
