Indian Equity Market Faces Downturn

On Tuesday, the Indian equity market witnessed a significant downturn with the BSE Sensex and Nifty50 both opening in the red. The BSE Sensex experienced a sharp decline, shedding over 400 points, while the Nifty50 fell below the 22,350 mark.

According to Ajit Mishra at Religare Broking, mixed global cues and underperformance of the banking index are significant hurdles. Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, noted that the Nifty experienced bidirectional movements before closing negatively, suggesting potential buying interest at lower levels.

Global Influences and Market Sentiments

US equities also declined sharply, with concerns over tariff disputes and a potential government shutdown heightening recession fears. This global uncertainty has affected Asian equities, leading to a third consecutive session of declines. Meanwhile, gold prices remained stable as traders awaited crucial inflation data, and the Japanese yen strengthened as a safe-haven currency amidst US growth slowdown concerns.

Amid these developments, FIIs were net sellers, while DIIs were net buyers, indicating a cautious approach by investors. Ajit Mishra emphasized the need for a fresh catalyst to surpass the short-term resistance and suggested a positive yet cautious approach focusing on stock selection and risk management.