Top Gainers And Losers Of Tuesday's Bear Market: Sensex, Nifty Dropped 1%, What Does It Mean?

The Indian stock market dropped sharply in Tuesday's trading session. After a volatile performance, both benchmarks Sensex and Nifty, dropped by nearly 1% each. Profit booking emerged in financial, auto, IT and FMCG stocks, making them top draggers of the market.

After closing bell, Sensex dropped 624.82 points (0.76%) to close at 81,551.63, while the Nifty slipped 175 points (0.70%) to end at 24,826.20. Bank Nifty also declined, closing at 55,350.80, down by 218.20 points (0.76%). In contrast, the Nifty Midcap index outperformed the major indices, finishing slightly higher at 57,154.50, up 87.20 points (0.15%).

Top Gainers And Losers Of May 27:

Midcap and Smallcap indices closed with a slight increase. Good buying was seen in defense stocks on May 27. On the sectoral front, PSU Bank, Realty and Pharma indices closed with a slight increase. Pressure was seen in Auto, IT, Financial Services, Oil & Gas and FMCG witnessing marginal decline of up to 0.5 per cent.

Tuesday's stock market crash came amid mixed global trend. European shares were up with FTSE and DAX index gaining by nearly 1% each after US President Donald Trump announced extension in the implementation of 50% tariff on EU products to July 9 from earlier date of June 1. Dollar weakened against basket of currencies, nearing its 1-year low. Despite this, Indian rupee was under pressure, closing around 86 per dollar.

In Asian cues, Sensex and Nifty witnessed the most selloffs, followed by the Taiwanese index TAIEX, which also dipped by 1%. South Korean and Japanese shares were up, but Chinese stocks also saw mixed sentiment. Hang Seng was up by 0.4%, but the mainboard Shanghai Composite index was marginally down.

Domestic equities was also cautious ahead of Wall Street, which will open on Tuesday after a three-day holiday. Wall Street was closed on Monday due to Memorial Day. Last week, on Friday, Dow Jones and S&P sliding 0.61% and the S&P 500 fell 0.67% overnight. The Nasdaq Composite index cracked 1%. In view of the same, investors turned cautious.

On BSE and NSE, Ultratech cement, JSW Steel & ITC were the top losers of the day. Also, the Q4 result stocks Info Edge, TTK Prestige, Blue Dart saw downfall.

On Nifty 50, Jio Financial, IndusInd Bank, Trent, Sun Pharma, Adani Ports, Nestle, Bharat Electronics and Dr Reddy's Lab are top bulls with marginal to 3.5% upside. Top bears are ITC, Ultratech, JSW Steel, Tata Motors, Axis Bank, Grasim, NTPC, and M&M that dropped by 1.3% to 2.3%.

Why Indian Market Fell Today:

"The Indian equity market witnessed a volatile session on May 27, with both benchmark indices ending notably lower. The Nifty declined by 175 points, while the Sensex fell by 625 points, reflecting broad-based profit booking across key sectors. Interestingly, the Defense sector outperformed, gaining over 1%, whereas Auto, Banking, and IT stocks came under pressure due to intraday selling," Mandar Bhojane, Equity Research Analyst at Choice Broking said in a note.

The expert added, after an early dip, the market recovered sharply during the day, but selling pressure re-emerged at higher levels, leading to a weak closing. This choppy price action indicates a lack of clear direction, suggesting that traders are in a wait-and-watch mode, anticipating a decisive breakout on either side before taking aggressive positions.