Sensex Today: Equity benchmark indices languished in the negative zone on Tuesday weighed by persistent selling pressure in key index heavyweights such as – Reliance, HDFC Bank, Infosys and Bharti Airtel.
The S&P BSE Sensex hit a low of 72,363, and finally settled 362 points lower at 72,470. In the process, the BSE benchmark snapped its 3-day winning streak, wherein the BSE benchmark had gained 821 points.
Nifty Technical
Emkay Institutional Equities maintains its stance of Nifty to remain at 24,000 level. Emkay expects the market to rebound in 3-6 months, when SMIDs (Small and Mid Caps) would start to outperform again and the ‘hide in large-caps’ trade would unwind.
The correction observed in March can be attributed to inflated valuations and concerns regarding liquidity within SMID funds and stocks. While the headline correction appears moderate, there is a substantial number of stocks that have been significantly affected. While not the most severe post-Covid correction, the pace at which it has unfolded has been disruptive. Particularly, energy, real estate, and materials sectors have been notable underperformers, with the decline in the first two sectors largely driven by mean reversion.
Global Cues
Stocks in Asia were mixed after US equities pulled back from a rally that drove the S&P 500 Index to multiple records, spurring speculation the market has gone too far, too fast. Japanese equities swung between gains and losses, while shares in Australia declined.
US stocks lost ground at the start of a holiday-shortened week on Monday as investors positioned themselves ahead of inflation data. All three major US stock indexes ended the session in the red, with the blue-chip Dow suffering the largest percentage loss.
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