Markets
Early Trade Decline Due to Profit-Taking After Record Rally
By Hazle Jakubowski
September 17, 2024
Mumbai's benchmark equity indices underwent a decline in early trading on Tuesday, following a surge to record high levels during the previous trading session. This market adjustment is likely due to profit-taking activities and sluggish trends observed in global markets.
The 30-share BSE Sensex experienced a decrease of 90.8 points, dropping down to 82,897.98 points. Simultaneously, the NSE Nifty declined by 26.9 points, settling at an index level of 25,356.15.
An analysis of individual performances within the Sensex firms revealed Tata Motors, Tata Consultancy Services (TCS), Maruti Suzuki India Limited (Maruti), Bajaj Finserv Ltd., Tata Steel Limited, and Adani Ports & Special Economic Zone as the key laggards or underperformers causing this downward trend.
Meanwhile, other stocks such as Hindustan Unilever Ltd., National Thermal Power Corporation (NTPC), Nestle India Ltd., and ICICI Bank emerged among the gainers despite overall market downturns.
In terms of international performance across Asian markets, Tokyo and Shanghai were also seen trading lower than their usual benchmarks, whereas Hong Kong quoted gains amidst these declining trends elsewhere in Asia.
Reflecting upon Monday's performance on Wall Street, US markets ended mostly higher compared to their Indian counterparts that experienced declines in Tuesday’s early trade sessions.
"Globally, equity markets were flat yesterday, signaling a wait-and-watch mood in anticipation of the Federal Reserve’s rate action tomorrow," said V K Vijayakumar, who serves as Chief Investment Strategist at Geojit Financial Services Pvt Ltd., drawing attention towards potential future developments impacting global financial environments based on Federal Reserve policy actions expected soon.
Monday's exchange data indicated Foreign Institutional Investors' decision to offload equities worth Rs 1,634.98 crore, which may have contributed towards Mumbai’s stock exchange decline this Tuesday morning too.
However, global oil benchmark Brent crude saw a rise of 0.45 percent to USD 73.08 a barrel.
Despite the decline in early trading on Tuesday, it's worth noting that Mumbai’s BSE benchmark had climbed up by 97.84 points, or 0.12 percent, just the day before, settling at an all-time record peak of 82,988.78 points on Monday, with intra-day high levels reaching as much as 83,184.34 points after gaining a significant boost of about 293.4 points, roughly equivalent to an increase of approximately 0.35 percent.
Furthermore, Nifty also experienced gains during Monday’s session, going up by around 27.25 points, which is equal to a gain of about.11 percent, thereby settling at an index level of approximately 25,383.75 and even hitting new intra-day record peaks amounting to nearly 25,445.70 post-gaining about 89.2 points, or equivalently around.35% within the same day itself.
This overall trend indicates that while there has been a temporary retreat from recent highs due to profit-taking activities and slower global trends observed this Tuesday morning, both Sensex and Nifty have shown strong performance capabilities over time with potential for further growth depending upon future market dynamics and investor sentiments.
LATEST ARTICLES IN Markets
Equity Markets: Gravity, Rationality & Defiant Booms.
ASX Mining Stock Soars 8% Amid Major News.
Upcoming Fed Meeting and FII Data to Impact Market Next Week.
Guide to Buying Stocks on eToro.
Join Our Newsletter
Popular Articles
-
Mar 13, 2024
Anyone But You - A Romantic Comedy Surprise of 2023 -
Feb 01, 2024
AI Company About to Revolutionize the Medical Space? -
Jul 31, 2024
Apple Anticipates Higher Revenue in Thursday's Earnings Report -
Aug 01, 2024
Samsung Galaxy S25: Potential Big Screen and Camera Upgrades