The Indian stock market took a hit on Tuesday morning, wiping out the gains from the previous day.
An hour after opening bell, the BSE Sensex was trading at 81,416 after losing 1.23% or 1,013 points
The Nifty50 index also saw a dip of 1%, losing 259 points to trade at around 24,665.
IT, bank stocks lead market decline
Market performance
The latest fall in the stock market comes after a ceasefire agreement with Pakistan over the weekend. The agreement had first resulted in a spike in the indices on Monday.
However, today witnessed a reversal of those gains, with IT and bank stocks leading the losses among Sensex constituents.
Infosys, Kotak Mahindra Bank, Power Grid, and ICICI Bank opened lower by up to 2%.
Foreign investors boost market despite recent decline
Investor activity
Despite the recent decline, FPIs had bought Indian equities worth ₹1,246 crore on Monday.
So far this month, FPIs have invested $1.7 billion in Indian markets on the back of optimism over domestic growth and a weaker dollar.
This influx of foreign investment has been a major factor supporting the market despite today’s downturn.
Sectoral indices and individual stocks react to market conditions
Sectoral impact
Most sectoral indices on the NSE were trading lower. Nifty Bank, Auto, Financial Services, FMCG, IT, Realty, and Oil & Gas indices fell by up to 1%.
Meanwhile, Nifty Pharma and PSU Bank gained 1.8% and 0.6% respectively.
Among individual stocks, Paytm dropped by 5% after Ant Financial sold a stake in the company via a block deal.