Data indicating further softening of economies in Europe and Asia as well as heavy attacks by Russian forces on Ukranian capital Kyiv also deterred investors from making aggressive bets.
The Sensex ended at 61,932.47, down 413.24 points or 0.66% from the previous close. The Nifty declined 112.35 points or 0.61% to end at 18,286.50.
“It is normal to see corrections and profit booking after a bounce-back in the markets,” said Hemang Jani, head, equity strategy, broking and distribution, Motilal Oswal Financial Services. “The Fin Nifty expiry today led to some profit booking in the banking and financial stocks.”
The Nifty hit a 2023 low of 16,828.35 on March 20. Since then, the index has risen 10%. In the same time period, the Bank Nifty rose 15% and was a few decimal points away from its all-time high of 44,151.80.
On Tuesday, foreign portfolio investors (FPIs) were net buyers for the 14th straight session. Overseas funds net purchased shares in the cash segment worth ₹1,406.86 crore while domestic institutions were net sellers to the tune of ₹886.17 crore, according to provisional stock exchange data.
“Some amount of correction was expected,” said Sandip Sabharwal, founder, Asksandipsabharwal.com. “Markets cannot go in a straight line after seeing a one-way up move since March.”Sabharwal said investors prefer to invest in financials and capital goods sectors that have reported strong growth in earnings and prefer domestic economy stocks.
Elsewhere in Asia, Japanese stocks gained for the fourth straight day but the Chinese markets declined nearly 1% after economic data for April – retail sales, industrial production and fixed asset investment – broadly missed expectations. The broader market managed to eke out gains with the NSE Midcap 150 ending 0.23% higher and the Smallcap 250 ending flat.
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