Sensex drops 210 pts, Nifty slips 159 as markets end in red
- Sensex fell 210 points and Nifty declined 159 points on Aug 4
- Markets ended in the red amid broad-based selling pressure
- Investors await global cues and domestic earnings for direction
Markets close lower after volatile session
Indian equity benchmarks ended in the red on Tuesday, with the Sensex dropping 210 points and the Nifty slipping 159 points. The decline snapped a brief winning streak, as selling pressure emerged across most sectors in the latter half of the trading session.
The BSE Sensex closed at 78,593, while the NSE Nifty settled at 23,992. Intraday moves were choppy, with indices swinging between gains and losses before settling firmly in negative territory.
What dragged the indices down
Broad-based selling was evident, with banking, IT, and auto stocks among the top losers. Heavyweights like Reliance Industries, HDFC Bank, and Infosys contributed significantly to the index fall.
Market participants pointed to profit-taking after recent gains, as well as caution ahead of upcoming global cues. The volatility index, India VIX, rose marginally, indicating heightened nervousness among traders.
Sectoral trends and market breadth
Among sectoral indices, Nifty Bank fell 0.6 per cent, while Nifty IT declined 0.8 per cent. Auto and pharma stocks also traded lower, while select FMCG and metal names managed to stay afloat.
The broader market mirrored the benchmarks, with midcap and smallcap indices also closing in the red. Market breadth was negative, with more than two stocks declining for every one advancing on the BSE.
What investors are watching now
Traders are now eyeing global markets, particularly the US Federal Reserve's policy stance and crude oil price movements. Any surprise in US economic data could influence foreign fund flows into Indian equities.
Domestically, the next batch of corporate earnings will be in focus, with several large-cap companies slated to report results this week. Analysts say valuations remain elevated, leaving little room for error in earnings delivery.
While the day's losses were sharp, the overall trend for the market remains range-bound, with support seen near the 23,800 level on the Nifty. A breakout above 24,200 could reignite bullish momentum, but until then, traders are advised to stay cautious.