Sensex Falls by 800 Points, Nifty Drops 210 Points After Record Single-Day Gain

On Tuesday, domestic stock markets opened lower after a record-breaking rally the previous day. The BSE Sensex, which had surged significantly, dropped by 788.62 points to 81,641.28, while the NSE Nifty fell by 209.90 points to 24,714.80. This decline occurred following the ceasefire agreement between India and Pakistan, which had triggered the market's strong performance on Monday.

The previous day, the stock market had experienced its biggest single-day gains in over four years, largely due to the positive developments surrounding the India-Pakistan ceasefire and a new trade deal between the US and China aimed at lowering tariffs. On Monday, the Sensex surged by 2,975.43 points, or 3.74%, settling at 82,429.9, while the Nifty gained 916.7 points, or 3.82%, to close at 24,924.7. These were the largest single-day increases for both indices since February 1, 2021.

The market capitalisation of BSE-listed companies rose significantly by Rs 16.15 lakh crore to Rs 432.56 lakh crore. The rally was broad-based, with all major sectors contributing to the gains. The information technology (IT), realty, and metals sectors were particularly strong performers. The Nifty IT index gained nearly 7%, and the Nifty Metal index rose by 5.86%. These gains were mirrored by strong performances in the broader markets, where each advanced by nearly 4%.

The rally saw significant contributions from key stocks. Adani Enterprises saw a sharp increase of 7.73%, Infosys Ltd gained 7.69%, Shriram Finance climbed by 7.16%, Trent Ltd rose by 6.79%, and Wipro Ltd increased by 5.99%. Other stocks that performed well included Sun Pharma, IndusInd Bank, Bajaj Finance, and Tata Steel, which contributed positively to the market’s upward movement.

However, the market opened lower on Tuesday due to profit-booking and adjustments following Monday's sharp gains. Among the Sensex firms, Infosys, HCL Tech, Kotak Mahindra Bank, ICICI Bank, and Tata Consultancy Services were among the major laggards on Tuesday. This reflects a general trend of profit-taking and recalibration in the wake of a significant rally.

Despite the market’s pullback on Tuesday, the overall sentiment remains optimistic due to positive external factors like the India-Pakistan ceasefire and the US-China trade deal. The reduction in global tensions, along with easing trade tariffs, has fueled market optimism. However, market experts have pointed out that it is natural for the market to experience some profit-taking after sharp rallies, and the overall trend remains bullish in the medium to long term.

In conclusion, while Tuesday's market opening showed a decline following a sharp rally on Monday, the market’s positive momentum, driven by global and local developments, continues to reflect a strong economic recovery. Investors and analysts will closely monitor future developments, including any further progress in international trade agreements and domestic economic policies, to gauge the sustainability of the market's growth.