Profit booking drags Sensex down 1,282 pts, Nifty below 24,650

The domestic share market traded lower on Tuesday after recording their strongest single-day gain in over four years on Monday driven by a potential easing of tensions between India and Pakistan. At close, the Sensex was down 1,281.68 points or 1.55 percent at 81,148.22, and the Nifty was down 346.35 points or 1.39 percent at 24,578.35. BSE Midcap index ended flat, while Smallcap index added one percent.
Market capitalization declined by Rs 1.28 lakh crore on Tuesday, reflecting the impact of the broad-based sell-off, according to information.
Bharat Electronics, Jio Financial, Hero MotoCorp, Dr Reddy's Labs and Sun Pharma were the top gainers on the Nifty while losers included Power Grid Corp, Infosys, Eternal, TCS, HCL Technologies. On the sectoral front,capital goods, media, PSU Bank, pharma indices rose 1-1.6 percent, while IT, metal, FMCG, oil & gas, realty indices shed 0.9-2.5 percent.
Rupee Close:
On 13 May'25,the Indian  rupee pared most of its initial gains to settle 3 paise higher at 85.33  against the American currency on Tuesday, due to rising appetite for riskier assets amid easing trade tariff tensions.However, rising crude oil prices, a strong US dollar and the emergence of profit booking in domestic equities restricted the rise of the domestic unit, traders reportedly stated.
Trading Guide:
Vinod Nair, Head of Research, Geojit Investments reportedly quoted as saying,the domestic market witnessed profit booking today, following yesterday’s sharp rally. The relief-driven surge—fuelled by easing global and domestic risks, including a reduction in trade war tensions and Indo-Pak geopolitical stress—appears to be taking a breather. This consolidation is primarily affecting large-cap stocks, while mid- and small-cap segments continue to gain traction. This divergence is expected to persist, supported by broad-based earnings improvements reflected in Q4 results so far.
Looking ahead, there is increasing optimism around FY26 earnings growth, underpinned by supportive fiscal and monetary policies, a rebound in external demand, a favorable monsoon outlook, and declining inflation and interest rates. These factors collectively suggest that midcaps are well-positioned to catch up and potentially outperform in the coming quarters.
Market experts recommended five shares to buy-Caplin Point Laboratories, Kirloskar Electric Company, Global Health, JM Financial, and PNC Infratech.

(Business Correspondent)