Frontline indices, the Sensex and the Nifty 50, ended with deep cuts on Tuesday, May 13, a day after clocking massive gains of nearly 4 per cent after a reduction in tensions between India and Pakistan. The Sensex closed 1,282 points, or 1.55 per cent, down at 81,148.22, while the Nifty 50 settled at 24,578.35, down 346 points, or 1.39 per cent, on Tuesday. The BSE Midcap and Smallcap indices outperformed the benchmarks, ending 0.17 per cent and 0.99 per cent higher, respectively.
Indian stock market: 10 key highlights from the day
Here are 10 key highlights from the stock market today:
1. Why did the Indian stock market fall today?
The benchmark indices ended lower on profit booking. The 30-share pack Sensex saw only five stocks ending in the green. Shares of HDFC Bank, Infosys, Reliance Industries, Bharti Airtel and ICICI Bank ended as the top drags on the index.
While some amount of uncertainty on the India-Pakistan front persists, a trade deal between the US and China is also seen as negative for the Indian stock market.
“The domestic market witnessed profit booking today, following yesterday’s sharp rally. The relief-driven surge—fuelled by easing global and domestic risks, including a reduction in trade war tensions and Indo-Pak geopolitical stress—appears to be taking a breather,” said Vinod Nair, Head of Research, Geojit Investments Limited.
“This consolidation is primarily affecting large-cap stocks, while mid- and small-cap segments continue to gain traction. This divergence is expected to persist, supported by broad-based earnings improvements reflected in Q4 results so far,” Nair said.
(This is a developing story. Please check back for fresh updates.)
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