Dalal Street kicked off Tuesday on a jittery note, with the Sensex plunging over 900 points within minutes of opening before staging a brief rebound, only to tumble again.
By 10:30 am, the index had crashed more than 1,000 points, while the Nifty slipped nearly 1 percent, reflecting the wild intraday swings that have followed Monday’s euphoric ceasefire rally. Most Nifty sectoral indices remained mixed, reflecting the broader market’s nervous undertone.
It seems that stock markets are facing extreme volatility today, and the trend may continue throughout the trading session.
Market experts say the volatility was expected. Monday’s surge, fuelled by easing geopolitical tensions and a sovereign credit upgrade, had priced in much of the good news. Tuesday’s action was largely driven by investors locking in gains, triggering a wave of intraday choppiness.
Still, the medium-term view remains constructive. The temporary ceasefire between India and Pakistan, along with the 90-day US-China tariff rollback, are seen as stabilising factors for global and domestic sentiment.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes Monday’s rally was driven more by short-covering and retail interest than big institutional flows.
“FII and DII net buying was only Rs 2,694 crore, indicating the 916-point Nifty rally wasn’t institution-led,” he said. “This lack of institutional momentum could limit further upside.”
He also flagged upside potential for Indian IT stocks amid an improving US outlook, but warned of pricing pressure for pharma exporters following Trump’s drug price control order.
Meanwhile, Anand James, Chief Market Strategist at Geojit Financial Services, offered a technical take on the Nifty outlook.
“Expect dips early in the day, with the majority of Nifty constituents closing near their respective VWAPs. But if such dips are held above 24,810, expect a resumption of the uptrend aiming 25,075-126. Our favoured view sees a low probability of runaway moves in either direction,” he said.
Experts have advised investors to stay optimistic but cautious, avoid chasing rallies, and watch global signals closely.