Indian Markets Retreat as Sensex Dips 650 Points with Nifty Falling Below 21,600

Indian benchmark equity indices witnessed a noticeable downturn on Tuesday, with the market mood souring amid a sell-off in several key sectors. The S&P BSE Sensex, coming off a record-setting session, retreated by 650 points, while the NSE Nifty 50 index dropped below the 21,600-mark during intra-day trading. This downturn marked a near 1% fall for both indexes as investors grappled with the market's sudden change in direction.

Auto, Banking, and IT Stocks Lead the Decline

The market's decline can be largely attributed to substantial losses in the auto, banking, and information technology (IT) shares. These sectors have traditionally held significant weight in the overall market performance, and their weakness on Tuesday was a significant contributor to the bearish trend observed in the larger index.

Previous Session's Optimism Fades

Just a day prior to the decline, the Sensex had soared to an unprecedented peak, setting a new all-time high at 72,562 points. This surge in the market had been a source of optimism for many investors. However, the exuberance was short-lived as the index hit a low of 71,614 the following day, wiping out a significant portion of the gains.

Sensex, Nifty, Markets