Benchmark stock market indices started the day on a lower note on Tuesday, dropping by up to 700 points initially but later recovering to trade below amid escalating tensions in the West Asia conflict. The S&P BSE Sensex was down 232.74 points at 73,874.11, while the NSE Nifty50 declined by 76.35 points to 22,891.90 as of 10:10 am.
According to Dr. VK Vijayakumar, the Chief Investment Strategist at Geojit Investments Limited, market participants are closely observing President Trump’s ultimatum to Iran regarding the Hormuz Strait situation, despite his inconsistent threats.
Vijayakumar also noted that growth stocks, particularly digital platform stocks, are seeing increased accumulation due to their more reasonable valuations following the recent market downturn.
In the trading session, HCL Technologies Ltd surged by 1.66%, Tech Mahindra Ltd by 1.04%, Sun Pharmaceutical Industries Ltd by 0.88%, Infosys Ltd by 0.83%, and Tata Consultancy Services Ltd by 0.82%. Other gainers included Bajaj Finance Ltd, NTPC Ltd, Bharti Airtel Ltd, Bajaj Finserv Ltd, Tata Steel Ltd, and ITC Ltd.
On the downside, Mahindra and Mahindra Ltd dropped by 1.43%, while Indigo Ltd, Titan Company Ltd, and Eternal Ltd were down by 1.40%, 1.40%, and 1.27% respectively. State Bank of India Ltd, Axis Bank Ltd, UltraTech Cement Ltd, and ICICI Bank Ltd also saw declines.
Vijayakumar highlighted that Foreign Portfolio Investors (FPIs) had sold a record Rs 122,182 crores worth of stocks in March and continued selling in April, primarily focusing on financial stocks. Despite the short-term selling pressure driven by currency weakness and high bond yields, he emphasized that patient investors have an opportunity to invest in high-quality financials, especially leading banking stocks.
Investors are advised to consult with qualified brokers or financial advisors before making any investment decisions.