The Indian stock market halted its record-setting spree of the last few sessions as investors booked profits across segments amid weak global cues and a lack of fresh triggers back home.
The market has discounted most positives, and its focus is now on policy announcements and the upcoming Budget. Experts expect the market’s upside to remain capped until the Budget in July.
“Ahead of the Budget, markets may see stock and sector-specific activities in hopes that the government may increase the outlay for sectors to push growth,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Nifty 50 hit its fresh record high of 23,664 during the session but failed to hold gains and ended 42 points, or 0.18 per cent, lower at 23,516.
However, gains in select banking and IT heavyweights capped the index’s losses.
The 30-share pack Sensex also hit its fresh record high of 77,851.63 during the session but ended with a nominal gain of 36 points, or 0.05 per cent, at 77,337.59, with 20 stocks in the red.
The mid and smallcap segments also witnessed profit booking as the BSE Midcap and Smallcap indices fell 0.91 per cent and 0.58 per cent, respectively.
The overall market capitalisation of the BSE-listed firms dropped to nearly ₹434 lakh crore from nearly ₹437.2 lakh crore in the previous session, making investors lose about ₹3.2 lakh crore in a single session.
Top Nifty 50 gainers today
Only 11 stocks managed to end in the green in the Nifty 50 pack, with Axis Bank (up 3.11 per cent), HDFC Bank (up 3.06 per cent), ICICI Bank (up 1.92 per cent), IndusInd Bank (up 1.86 per cent), Kotak Mahindra Bank (up 1.49 per cent), and SBI (up 1.11 per cent) as the top gainers.
Top Nifty 50 losers today
Shares of Titan (down 3.60 per cent), Maruti Suzuki (down 2.60 per cent), Bharti Airtel (down 2.41 per cent), Bajaj Auto (down 2.40 per cent), BPCL (down 2.32 per cent) and Larsen and Toubro (down 2.23 per cent) ended as the top losers.
Sectoral indices today
Nifty Bank index hit its fresh record high of 51,957 during the session and ended with a strong gain of 1.90 per cent at 51,398.05 with 10 components in the green and only two – AU Small Finance Bank (down 1.25 per cent) and Bank of Baroda (down 0.87 per cent) – in the red.
Nifty Private Bank index jumped 2.01 per cent, but the PSU Bank index ended with a nominal gain of 0.09 per cent.
Among the losers, Nifty Realty (down 2.83 per cent), Consumer Durables (down 1.96 per cent), Oil & Gas (down 1.74 per cent), Auto (down 1.30 per cent), Media (down 1.29 per cent) and Metal (down 1.18 per cent) lost significantly.
Expert view on markets
“The domestic market had started on good footing, driven by an early and better forecast for the monsoon. However, due to the slow progress of monsoon, the market is taking a breather,” said Vinod Nair, Head of Research, Geojit Financial Services.
“The banking sector is outperforming, a laggard year-to-date, supported by a recovery in FII inflows due to the continued decline in the US 10-year yield. On the global front, UK inflation fell back to the BOE’s target of 2 per cent, and attention is now focused on the BOE’s policy decision tomorrow,” said Nair.
Technical view on Nifty 50
Shrikant Chouhan, the head of equity research at Kotak Securities, observed that Nifty 50 had been consistently facing selling pressure at higher levels after a gap-up opening.
On daily charts, Nifty formed a bearish candle, which indicates temporary weakness from the current levels. However, Chouhan believes the short-term texture of the market is still positive.
“We are of the view that 23,450/77,100 would be the crucial support zone for the day traders; below the same, we could see one quick intraday correction till 23,350-23,300/76,800-76,600,” said Chouhan.
“On the flip side, 23,660/77,850 could be the immediate breakout levels for the bulls. Above 23,660/77,850, the market will likely move up to 23,775-23,800/78,000-78,200. The intraday market texture is non-directional; hence, level-based trading would be the ideal strategy forday traders,” Chouhan said.
According to Rupak De, a senior technical analyst at LKP Securities, market sentiment continues to favour short-term bullish trades as the index sustained above the 55 exponential moving average (EMA) on the hourly chart.
“The short-term trend remains strong, and any dips towards the 55-hour EMA, which is currently pegged at 23,340, might get bought into. On the higher end, in the short term, the index might move towards 23,800 and beyond,” said De.
Read all market-related news here
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
3.6 Crore Indians visited in a single day choosing us as India’s undisputed platform for General Election Results. Explore the latest updates here!
Download The Mint News App to get Daily Market Updates.
Published: 19 Jun 2024, 03:32 PM IST
