Sensex falls 450 pts from day's high, Nifty near 24,200: 3 key reasons behind market paring gains

Stock market today news: Sensex, Nifty see profit booking in trade.

• Sensex fell 450 points from day's high amid profit booking in IT.
• IT shares fell; Coforge and Infosys down over 1%.
• FIIs continued selling, offloading Rs 6,345 crore on Monday.

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The benchmark equity indices pared a part of their early gains in afternoon trade on Tuesday, with the Sensex falling about 450 points from the day’s high amid profit booking in IT shares and continued foreign fund outflows.

The Sensex had jumped 960.09 points or 1.23 percent to an intraday high of 78,526.25 in early trade. The broader Nifty rose 275.75 points or 1.14 percent to 24,303.80.

However, the indices gave up some gains post-noon.

At around 1:30 pm, the Sensex was trading at 78,063.99, still up 497.84 points or 0.64 percent. The Nifty quoted 194.60 points higher at 24,222.65, up 0.81 percent.

Reasons behind market pullback

1) Profit taking: Profit booking in information technology (IT) shares weighed on the market after two sessions of gains. The IT index was down up to 1 percent, with Coforge falling 2.17 percent and Infosys declining 1.7 percent, respectively.

2) Nifty expiry: Markets also remained volatile on the weekly expiry of Nifty derivatives contracts.

3) FII selling: The foreign institutional investors (FIIs) continued to remain net sellers. According to exchange data, foreign institutional investors offloaded equities worth Rs 6,345.57 crore on Monday and have been net sellers so far in March.

Technical view

According to Anand James of Geojit Investments, the recovery seen after the market held above the opening lows and closed above the 24,000 mark in the previous session has revived hopes of further upside.

He said the immediate rise could face resistance in the 24,300–24,370 range, followed by consolidation or mild dips. A decisive move above this zone could open the way towards the 25,000 level.

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