By Vineet Kumar 
Sensex Crashes 1,000 Points, Nifty Slips Below 24,650 Amid Profit Booking; IT & FMCG Stocks Under Pressure
A day after the markets staged a powerful rally, Dalal Street witnessed sharp profit booking in early trade on Tuesday, erasing over Rs 63,000 crore in market capitalization. The Sensex tumbled over 1,000 points, while the Nifty 50 slid below 24,650, dragged down by selling in IT, FMCG, and auto stocks.
By mid-morning, the Sensex had dropped 1,093 points (1.32%) to hit an intraday low of 81,336, while the Nifty fell 289 points (1.16%), touching 24,634.
Key Highlights:
Profit Booking Hits After Monday’s Rally: Monday’s market surge was driven largely by short-covering and retail plus HNI participation, not institutional buying. Combined FII and DII inflows stood at just Rs 2,694 crore, according to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Top Gainers on Nifty 50: Despite the fall, stocks like Bharat Electronics, Dr. Reddy’s Labs, Jio Financial, Cipla, and Sun Pharma managed to trade in the green.
Big Losers of the Day: IT and power stocks bore the brunt. Infosys, HCL Tech, Power Grid, ETERNAL, and Hindalco were among the top laggards, sliding up to 3%.
Market Breadth Positive Despite Indices Fall
Interestingly, broader market sentiment was not entirely negative. Around 2,300 stocks advanced, against 859 declines, indicating stock-specific action in the midcap and smallcap segments. The Nifty Midcap100 index rose 0.26%, showing resilience amid frontline stock weakness.
Global Cues Mixed
Asian markets offered a mixed bag. Nikkei 225, Kospi, and Shanghai Composite traded higher, while Hong Kong’s Hang Seng remained in the red. Overnight, Wall Street posted strong gains, with the Nasdaq rallying 4.35%, the S&P 500 up 3.26%, and Dow Jones gaining 2.81%.
Meanwhile, Brent crude prices dipped slightly to $64.81 per barrel, providing some relief on the inflation front.
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Conclusion:
Today’s market correction appears to be a classic case of profit-taking after an aggressive rally. While headline indices fell, the broader market’s strength suggests underlying investor interest remains intact. As always, traders should stay focused on sectoral trends, FIIs flows, and global cues to gauge short-term market direction.
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