Key Factors Behind the Decline:
- Profit Booking: The sharp rally on Monday, driven by easing geopolitical tensions and positive global cues, led investors to book profits, resulting in a broad-based sell-off.
- Sectoral Weakness: IT and FMCG sectors were among the top laggards. Infosys dropped 4%, and Power Grid fell 3%, dragging the indices lower.
- Geopolitical Concerns: Despite a ceasefire between India and Pakistan, underlying tensions persisted, causing investor apprehension.
- Global Trade Dynamics: The US-China trade truce raised concerns about increased competition for India, potentially impacting exports.
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