Sensex Ends 14 Points Lower
The Indian shares snapped their two-day winning streak as the BSE Sensex closed lower by 14.37 points at 50,637.53, while the Nifty-50 settled above 15,200. Banks and Financials were the top contributors in the drag on Tuesday, May 25.
The volatility in the market was mainly caused by a selloff in the financial names and other value contributors. L&T Finance and M&M Finance were the top drags in the Financial sector as they dipped over three and two per cent respectively.
In the 30-share BSE index, 21 shares advanced, and nine shares closed with declines. HDFC Bank, Axis Bank, and Reliance were the top laggards that dragged the BSE Sensex to close in the red territory after a gap-up opening.
However, Asian Paints, Titan, and Eicher Motors ended among the top gainers in the market on Tuesday as they gained over three per cent each in the day's trade.
Analysts are bullish on the current market trend as investors are tracking the decline in virus cases with a positive optimism of lifting restrictions in several parts of the country which can provide a back to the economic growth of the country.
"As the statewide reduction in Covid cases prompted optimism of progressive unlocking by state governments, traders took note of the decreasing Covid cases and sentiments remained positive in the market," said Gaurav Garg - Head of Research at CapitalVia Global Research Limited.
Further, the market capitalization of the BSE-listed companies reached a milestone of $3 trillion, brokerage houses and experts are of a view that the markets are expected to move smoother in the future amid hopes of a better situation of Covid-19 in India.
"As the 2nd Covid-19 wave recedes in India (active cases down ~1/3rd in 3 weeks from the recent peak) and pace of vaccination picks up in rest of the CY21, we hope and expect the journey will become little more smoother", said Motilal Oswal Financial Services in a report.
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