Stock markets end a three-day winning streak; foreign investment outflows and profit-taking cause the Sensex to drop 110 points

Tuesday saw the end of the three-day rally in the stock market, with the benchmark Sensex falling 110 points as a result of profit-taking in a few private bank and auto equities amid poor trends from the US markets and outflows of foreign funds.

The 30-share BSE Sensex ended at 73,903.91, down 110.64 points, or 0.15 percent. The index fell by 270.78 points, or 0.36 percent, throughout the day to a low of 73,743.77.

At 22,453.30, the larger NSE Nifty fell 8.70 points, or 0.04 percent.

Sensex and Nifty reached all-time highs during Monday’s intraday trading before closing the day around 0.5% higher.

“After setting a new record high yesterday, the domestic market took a break today. According to Vinod Nair, Head of Research at Geojit Financial Services, “a number of factors, including a strengthening dollar, rising US bond yields, and a noticeable increase in crude oil prices, collectively dampened investor sentiment.”

The biggest laggards in the Sensex basket were Tech Mahindra, Wipro, Infosys, ICICI Bank, Kotak Mahindra Bank, HCL Technologies, and Larsen & Toubro.

Among the winners were Tata Motors, IndusInd Bank, Nestle, and Mahindra & Mahindra.

Shanghai finished up lower in the Asian markets than Tokyo, Seoul, and Hong Kong, which all ended up higher. For the most part, European markets were trading higher. Monday’s Wall Street close was mostly down.

According to exchange statistics, foreign institutional investors (FIIs) offloaded stocks on Monday worth Rs 522.30 crore.

The benchmark for world oil, Brent crude, increased 1.61 percent to USD 88.83 a barrel.

According to a monthly survey released on Tuesday, India’s manufacturing sector development reached a 16-year high in March, thanks to the biggest rise in production and new orders since October 2020 and indications of robust market conditions.

From 56.9 in February to a 16-year high of 59.1 in March, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) showed a robust rise in new orders, production, and input inventories, along with a resurgence in job creation.

According to the Purchasing Managers’ Index (PMI), a score of less than 50 indicates contraction, while a score over 50 indicates growth.

Sensex closed at 74,014.55, up 363.20 points, or 0.49 percent, on its third day of advances. Nifty gained 135.10 points, or 0.61 percent, to end at 22,462.