Nifty Closes Below 24,000 on Foreign Investors Profit Booking

Mumbai: Early morning gains of over 1,050 points for the Sensex were surrendered gradually on profit-taking by foreign investors as the market tried to make a comeback from Monday's big correction. Both Sensex and Nifty-50 closed in the red on negative global cues though Japan's main index Nikkei rebounded with a 10.23 per cent gain while the US market fell sharply on Monday too. .

Nifty-50 closed below 24,000 at 23,992.55 losing 63 points or 0.26 per cent. The Sensex closed at 78,593.07 losing 166 points or 0.21 per cent.

Broader market fell more with the BSE Mid-cap index down by 0.71 per cent and the BSE Small-cap index fell 0.57 per cent.

Foreign portfolio investors were net sellers of equities worth Rs 3,531.24 crore while domestic institutions were net buyers of Rs 3,357.45 crore.

"Indian market remains sensitive and vulnerable as global events unravel with Nifty-50 just having

turned from a 10-period long stretch of month-on-month peaks," said Anand James,

chief market strategist, Geojit Financial Services while commenting on the volatility index India VIX fall by 8 per cent to 18.74 after a sharp spike a day before.

"Investors are watching the appreciating Yen, weak US economic data, and rising geopolitical tensions.

They are now exercising caution and shifting towards defensive sectors such as FMCG, IT, and pharma.

Nonetheless, the market is looking forward to the decline of crude prices and potential rate cuts by

the US Fed & RBI to mitigate the downturn risk," added Vinod Nair, head-Research,

Geojit Financial Services.

Primary market didn't see much impact from the market meltdown on Monday. Ola Electric Rs 6,145 crore IPO got subscribed 4.26 times as per latest data on the last day of bidding. Akums Drugs listed at Rs 725 per share, a modest premium over the public issue price of Rs 769 but gained later to close 10 per cent higher at Rs 797.50.