Indian equity benchmarks concluded Tuesday's trading session with significant losses, mirroring weak global cues and profit-booking in key sectors. The market mood turned cautious ahead of major economic data releases and corporate earnings.
Benchmarks Slide as Selling Pressure Intensifies
The 30-share BSE Sensex ended the day at 79,441.45, registering a decline of 344.78 points or 0.43%. The broader NSE Nifty 50 followed suit, closing at 24,123.85, down by 99.30 points or 0.41%. The trading session on June 25, 2024, was marked by volatility, with both indices struggling to find firm footing.
Market analysts pointed to a combination of factors for the downturn. Weak trends in Asian and European markets set a negative tone, prompting investors to book profits, especially in sectors that had seen recent run-ups. The absence of fresh positive domestic triggers further contributed to the subdued sentiment.
Sectoral Performance: A Mixed Bag
The sell-off was not uniform across the board. Sectoral indices presented a mixed picture. The BSE Realty index emerged as the top loser, plunging by 2.13%. Other sectors like Industrials, Capital Goods, and Utilities also faced substantial selling pressure.
On the flip side, the BSE Healthcare index defied the broader trend, managing to close in positive territory with a gain of 0.72%. This resilience in pharma stocks provided some cushion to the overall market fall. The performance highlights the rotational nature of market movements, where money flows from one sector to another based on risk appetite and valuation comfort.
Broader Market and Key Stock Movements
The weakness extended to the broader market as well. The BSE Midcap index declined by 0.77%, while the BSE Smallcap index fell by 0.58%, indicating that the profit-booking was widespread and not confined to large-cap stocks alone.
Among the major Sensex constituents, Larsen & Toubro (L&T) and UltraTech Cement were among the biggest drags, contributing significantly to the index's fall. In contrast, select stocks like Sun Pharma and Nestle India provided some support, limiting deeper losses.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on the previous trading day, offloading shares worth Rs 1,790.19 crore, as per provisional exchange data. This activity added to the selling pressure in the market.
Market Outlook and Key Triggers Ahead
Experts suggest the market is in a consolidation phase after a strong rally. The immediate focus now shifts to upcoming domestic and global events that could dictate the trend. Key factors that investors are watching closely include:
- The progress of the monsoon season across India.
- The beginning of the Q1 FY25 corporate earnings season.
- Global commodity prices, especially crude oil.
- Movements in the US bond yields and the dollar index.
The decline underscores the sensitivity of Indian markets to global risk sentiment. While the long-term domestic growth story remains intact, short-term volatility is expected to continue due to external headwinds and valuation concerns. Traders are advised to adopt a stock-specific approach in the current environment.
