NEW DELHI: Indian stock markets remained under pressure on Tuesday as selling by foreign institutional investors (FIIs) continued, keeping market sentiment subdued.
The benchmark Nifty 50 index was trading with a marginal decline of 42 points at 23,338.70, while the BSE Sensex slipped by 114 points to 77,196.86 at the time of reporting.
Market experts attributed the decline to persistent selling by FIIs. However, they believe this presents an opportunity for long-term investors to accumulate large-cap stocks.
“When FIIs turn buyers in India, which is inevitable, they will be buying the large-caps that they are currently selling. For patient investors, this is a good opportunity,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He further added “The relentless selling by FIIs in largecaps has made their valuations fair while the valuations of mid and smallcaps continue to be excessive. FIIs will certainly turn buyers in India; but that will happen only when the dollar index turns weak”.
In the sectoral indices on the National Stock Exchange (NSE) also reflected weak sentiment, with most sectors trading in the red. Nifty Bank, Nifty Auto, and Nifty Media saw declines, with Nifty Media down by 1.72 per cent. Other sectors such as Pharma, PSU Banks, and Realty were also under pressure, with Nifty Realty falling by 2 per cent.
Among individual stocks, Adani Enterprises emerged as the top gainer, rising by over 2 per cent, while Eicher Motors was the biggest loser, declining by more than 5 per cent.
“The nifty fell for a fourth day yesterday – the first time it happened since mid-January and closed at the critical 23381 level. Yesterday, breadth was firmly negative, with nearly 90 per cent of NSE500 stocks ending down, suggesting that weakness persists. Next support on the downside for the nifty sits between 23164 – 23287 while resistance is expected to be offered between 23480 and 24621” said Akshay Chinchalkar, Head of Research, Axis Securities.
Despite the current selling pressure, analysts remain optimistic about a future rebound once FIIs resume their buying activity, which is expected to drive a rally in large-cap stocks. (ANI)