The Indian stock market gained on Tuesday after witnessing significant volatility during the trading session. The Sensex rose by 694.39 points, or 0.88% to end at 79,476.63 points, while Nifty 50 index gained 217.95 points, or 0.91% to close at 24,213.30.
Market data indicated that sectors such as Nifty Bank, Financial Services, Metal, PSU Bank, and Private Bank were among the top performers. Volatility marked the trading session with the Sensex plunging around 1500 points before recovering.
Foreign portfolio investors (FPIs) sold stocks worth Rs 94,017 crore in India through October, suppressing the stock market’s overall performance. In the process, they became net sellers in India, after having remained buyers for four months. Data from National Securities Depository Limited data showed that the total stocks they sold in India in October were the highest-ever in a month.
According to Geojit Financial Services’ Chief Investment Strategist, V.K. Vijayakumar, domestic concerns, including downgraded earnings expectations, are weighing on investor sentiment. He highlighted that approximately two-thirds of Nifty 50 companies missed Q2 earnings estimates, resulting in reduced FY25 earnings forecasts from 15% to under 10%.
“With this kind of earnings downgrade it would be difficult to sustain the current valuation. This is the rationale of the relentless FII selling which might continue for some more time,” said Vijayakumar.
(ANI)
