Black Tuesday for Sensex, Oil & Gas Lights Up a Gloomy Market

In a volatile trading session marked by heavy selling in heavyweight stocks, the Indian stock market ended on a negative note on Tuesday. The Nifty 50 was up 52.70 points, or 0.25%, at 21,491.20. Meanwhile, the Sensex 30 was down 802.27 points, or 1.74%, at 45,647.93.

The market witnessed an initial surge in the morning on positive global cues, but the momentum fizzled out quickly as selling pressure emerged in blue-chip stocks like Reliance Industries, HDFC Bank, and Infosys.

Reliance, the heavyweight on both major indices, tumbled over 2% during the day, dragging down the Sensex significantly. Additionally, selling was also seen in IT and FMCG sectors, further adding to the bearish sentiment.

However, the oil & Gas sector emerged as a surprise winner. The BSE oil & Gas index surged 2.5%, led by strong gains in stocks like ONGC, Oil India, and Reliance Industries’ subsidiary Jio Platforms.

The upswing in the oil & gas sector can be attributed to the recent rise in international crude oil prices, buoyed by optimism around an economic recovery and easing supply concerns.

Other reasons were about rising inflation and interest rates weighing on investor sentiment. However, positive performance from the public sector bank (PSU) sector helped to limit the downside for the Sensex.

What are the thoughts of analysts and investors?

Analysts attributed the overall stock market decline to profit-booking by investors after the recent rally and ongoing concerns about the upcoming Union Budget. The upcoming budget announcement on February 1st has kept investors on the edge, as they anticipate potential changes in tax policies and economic reforms.

Conclusion

The Indian stock market witnessed a volatile trading session on Tuesday, with the benchmark indices ending the day in the red. While the initial momentum was positive, it fizzled out quickly due to heavy selling pressure in blue-chip stocks.

The oil & gas sector, however, bucked the trend and emerged as the top-performing sector on the day. The stock market outlook remains uncertain due to the upcoming budget announcement and ongoing global volatility.