Sensex slips 600 points from day's high
What's the story
India's benchmark indices, the Sensex and Nifty, witnessed a decline on Tuesday. The former fell by 600 points from its day's high while the latter dropped below the critical 24,000-mark. At 2:30pm, the Sensex was down by 469.57 points to 76,019.39 while the Nifty dropped over 110 points to trade at 23,921. Earlier in the day, the Sensex had hit a high of 76,627 while Nifty touched a peak of 24,089.
Market factors
Profit booking after a 2-week high
The fall in the indices can be attributed to profit booking after a two-week high on Monday. The previous day's gains were fueled by hopes of an impending peace deal between the US and Iran. However, these expectations were dashed when the US launched strikes against boats allegedly trying to lay mines and missile-launch sites in southern Iran.
Diplomatic developments
US Secretary of State's statement adds to uncertainty
US Secretary of State Marco Rubio said on Tuesday that negotiating a deal with Iran could "take a few days." This statement comes after the US strikes, further complicating the situation. The uncertainty surrounding these diplomatic efforts has contributed to market volatility today.
Expiry impact
Monthly F&O expiry also contributes to volatility
Another factor contributing to today's market volatility is the monthly futures and options (F&O) expiry of Nifty. This event often leads to fluctuations as traders adjust their positions ahead of the new month. The combination of profit booking, geopolitical tensions, and technical factors has resulted in a dip in India's benchmark indices today.