Nifty and Sensex decline in early trading

Tuesday’s opening of the equity market was lackluster, with the Sensex falling around 80 points as a result of sluggish trends in Asian markets and dwindling prospects of early interest rate reduction internationally.

The 30-share Sensex fell 0.11 percent, or 79.66 points, to 72,628.50 points after rising for five consecutive days. 16 components were down, with Mahindra & Mahindra plunging more than 1%.

The larger Nifty was also seeing negative trade, falling 34.15 points, or 0.15 percent, to 22,088.10 points.

Within the Nifty pack, up to 28 scrips were in the negative.

“Even a bigger-than-expected interest rate decrease in China failed to pique the curiosity of investors weary of the absence of other significant stimulus measures, as Asian markets remained trapped below one and a half-month highs on Tuesday.

After reaching an all-time high on the intraday charts, Nifty closed higher for the sixth consecutive session, according to Deepak Jasani, Head of Retail Research at HDFC Securities.

On Monday, the markets saw increases for the fifth straight trading day. The Sensex increased by 281.52 points, or 0.39 percent, to conclude the day at 72,708.16 points, while the Nifty ended at an all-time high of 22,122.25 points, up 81.55 points or 0.37 percent.

Global stock markets suffered on Monday as expectations of early interest rate reduction dimmed and US markets remained closed.

“European markets and the FTSE were mixed on Monday in London, as the fallout from last week’s UK GDP data — and the news that the UK fell into a recession at the end of last year — continues to reverberate,” Jasani said.

Foreign Portfolio Investors (FPIs) were net sellers on Monday, the day the domestic market finished higher for the fifth session in a row, offloading shares valued at Rs 754.59 crore, according to exchange data.

According to Jasani, the markets may now correct or consolidate for a while before the Nifty gets ready for the next up move. The Nifty may encounter resistance from the 22,187 level, while the 21,954 level may provide support in the short run.