Mumbai: The BSE Sensex and NSE Nifty tumbled on Tuesday after two days of rally. The 30-share BSE benchmark plunged over 900 points in the morning trade to 81,303.88. The Nifty opened at 24,956.65 and dropped to 24,765.75. However, both the indices recorded some recovery and was trading 561 points lower at 81,614.46 at 12:30 pm, while the broader Nifty was at 24,855.05.
The stock market indices fell as a result of profit booking. The market was recording a rise in the recent sessions, and thus some investors resorted to booking profits. The Asian stock markets, including Japan, Taiwan and Korea, have been declining, which also made Indian investors a bit worried.
The sudden increase in Covid-19 cases has caused a bit of panic amongst the investors and avoiding any risk.
Foreign investors (FPIs) pulled out money from the Indian stock market. On May 26, they invested only Rs 135.98 crore, the effect of which was also seen on the market.
The valuation of stocks or the Nifty-50 index is important. Currently, the P/E ratio of Nifty 50 (22.6) is higher than its average, which means that the stock prices are high and there is no significant growth in corporate earnings.
The ongoing geopolitical tensions across the world is also worrying the investors. Many people are now making profits by selling shares when the market is booming.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
The BSE Sensex and NSE Nifty experienced a significant downturn on Tuesday, plummeting over 900 points in morning trading due to profit-booking after recent gains. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
