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Indian Markets Tumble as Profit-Taking Hits, RBI Policy Looms
5 Feb
Summary
- Equity benchmarks closed lower, ending a three-day winning streak.
- Investors booked profits amid stretched valuations and RBI policy caution.
- Broader market also declined, with midcap and smallcap indices falling.
Indian equity benchmarks experienced a significant downturn on Tuesday, marking the end of a three-day rally. Investors chose to book profits amidst stretched valuations, with caution also stemming from the upcoming Reserve Bank of India's monetary policy decision scheduled for Friday. The slump was not confined to frontline stocks, as the broader market also succumbed to selling pressure.
The S&P BSE Sensex fell 503.76 points to 83,313.93, while the Nifty 50 index declined 133.20 points to 25,642.80. This decline followed a period of gains, with the Sensex advancing 3.20% and the Nifty gaining 3.29% over the preceding three trading sessions. Major drags on the Nifty included Bharti Airtel, Reliance Industries, and ICICI Bank. The broader market also showed weakness, with the BSE 150 MidCap Index down 0.43% and the BSE 250 SmallCap Index down 0.81%. The market breadth indicated more decliners than advancers on the BSE.
