By-Mr. Vikram Kasat, Head – Advisory, PL Capital

“After Monday’s euphoric 4% surge—the sharpest in over four years—Indian markets took a breather on Tuesday, with profit-booking weighing on frontline indices. The Sensex tumbled 1,281 points to close at 81,148.22, while the Nifty slipped 346 points to end at 24,578.35. The correction came despite upbeat investor sentiment buoyed by easing global trade tensions and ongoing foreign inflows, with FPIs pumping in $1.7 billion into equities so far this month.

While broader indices showed resilience—the BSE Midcap index ended flat and the Smallcap index gained 1%—sectoral trends were mixed. Capital goods, media, PSU banks, and pharma rose between 1% and 1.6%, while IT, metal, FMCG, oil & gas, and realty saw losses of up to 2.5%. Pharma was notably in focus after the U.S. administration announced drug price reforms. On the Nifty, top gainers included Bharat Electronics, Jio Financial, Hero MotoCorp, and Sun Pharma, while Infosys, Power Grid, TCS, and HCL Tech dragged.

The rupee held steady at 85.34 per dollar. Despite the day’s fall, I believe the underlying tone remains constructive, but investors should brace for volatility as global cues and domestic earnings shape the next leg of the rally.

Bottomline: A healthy pause after a sharp rally—markets may consolidate before resuming their upward journey.”