New Delhi: The markets on Tuesday witnessed a major slump as the Hyundai Motors IPO failed to create a buzz as it opened at a discount of 1 per cent. Indian benchmark equity indices Sensex and Nifty also witnessed a massive dip as BSE dropped 931 points (-1.15%) while the NIFTY fell by 311.40 (-1.26%) points.
In the Nifty pack, ICICI Bank, Nestle India, Bharti Airtel, ITC and Infosys were among the top gainers. Meanwhile, Adani Enterprises, BEL, SBI, Coal India and Tata Steel were the top losers.
The dip in the market came after Hyundai shares fell following a 1 per cent discount listing today. At the time of filing, the shares of Hyundai Motors India were trading in the red. On the BSE, the stocks are trading at Rs 1860.
In a challenging market environment, 41 of the 50 stocks in the NSE index are currently trading in the red. Notably, BEL and Tata Steel are among the top losers, contributing to the overall decline. Despite these setbacks, gains in major stocks such as ICICI Bank, Infosys have provided some support to the index.
Why Stock Market Is Down Today? Experts' Take
Anand James, Chief Market Strategist, Geojit Financial Services, said, "The risk-on approach that surfaced on Friday fizzled off yesterday in the face of the rejection trades on the first approach to 24950. However, the lack of momentum post downside break of 24770 suggests that the 24470-23900 view may take a while to mature. Towards this end, should we push back above 24800, we would be inclined to consider it as a fresh onset of buying interest, and aim for 25350/90 again."
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Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, "When market valuations are at elevated levels some triggers will cause corrections, making the valuations reasonable and in tune with long-term averages. This time the trigger for the correction has come from the sustained selling by FIIs which has reached Rs 88244 crores by 21st October, according to NSDL. This record high FII sell figure didn’t impact the market severely because of the countervailing action of sustained DII buying. The fact is that even after the correction triggered by the sustained FII selling, Indian market valuations are higher than historical averages even though largecap valuations can be justified by their long-term growth prospects."