The Indian stock market gained momentum on Tuesday after seeing huge fluctuations during the trading session. The Sensex closed 694.39 points or 0.88% higher at 79,476.63, while the Nifty 50 index closed 217.95 points or 0.91% higher at 24,213.30.
Market data indicated that sectors like Nifty banks, financial services, metals, PSU banks and private banks were among the top performers. The trading session was volatile and the Sensex fell by around 1500 points before recovering.
Foreign portfolio investors (FPIs) sold shares worth Rs 94,017 crore in India during October, impacting the overall performance of the stock market. In the process, after being buyers for four months, they became net sellers in India. Data from National Securities Depository Ltd showed that the total number of stocks sold by them in India in October was the highest ever in a month.
According to VK Vijayakumar, chief investment strategist, Geojit Financial Services, domestic concerns including lower earnings expectations are weighing on investor sentiment. He highlighted that nearly two-thirds of the Nifty 50 companies missed Q2 earnings estimates, resulting in a decline in FY25 earnings forecasts by 15% to less than 10%.
âIt will be difficult to maintain the current valuations with such an earnings decline. This argues for continued selling by FIIs which may continue for some more time,â Vijayakumar said.
(ANI)
