Sensex crashes 1,000 pts, Nifty below 24,650 on profit booking after Monday's rally; IT, FMCG drag

In a sharp reversal from Monday's rally, the Indian stock market witnessed a significant downturn as the Sensex plunged over 1,000 points, and the Nifty fell below the 24,650 mark. This decline is primarily attributed to extensive profit booking by investors, who were eager to capitalize on the recent gains. Key sectors, particularly Information Technology (IT) and Fast-Moving Consumer Goods (FMCG), bore the brunt of this sell-off, contributing substantially to the market's downward trajectory. Adding to the market's woes, rising crude oil prices emerged as a critical factor influencing investor sentiment. The escalating costs of crude have raised concerns about potential inflationary pressures, which could impact corporate earnings and consumer spending. These apprehensions have led traders to adopt a cautious stance, further fueling the market's decline. The Sensex's plunge of over 600 points earlier in the day set the tone for a bearish session, ultimately deepening the losses by the day's end. Despite the downturn, analysts suggest that this correction could offer a buying opportunity for long-term investors. Market experts advise keeping an eye on global cues and upcoming economic data releases, which could provide insights into future market movements. As investors navigate this volatile period, the focus will likely remain on international developments and domestic economic indicators to gauge the market's recovery prospects.

— Authored by Next24 Live