Indian equity benchmarks extended their losses into a fourth straight session on Tuesday, June 25, 2024, reflecting persistent caution among investors. The markets remained under pressure throughout the trading day, closing in the red amid mixed global cues and sector-specific weaknesses.
Key Indices Register Notable Declines
The benchmark S&P BSE Sensex concluded the day at 84,174.15 points, marking a decline of 220.05 points or 0.26%. Similarly, the broader NSE Nifty50 index settled at 25,665.80 points, down by 44.30 points or 0.17%. This closing level placed the Nifty firmly below the psychologically significant 25,700 mark, a key threshold watched by traders.
Market breadth, which indicates the number of advancing shares versus declining ones, painted a negative picture. On the BSE, 2,075 stocks declined compared to 1,667 that advanced. This suggests that the selling pressure was broad-based and not confined to just a few heavyweight stocks.
Sectoral Performance and Top Losers
The market downturn was led by significant losses in specific sectors. The Nifty Bank index was a major drag, falling by 0.69%. The Nifty Financial Services index also dropped by 0.44%. Other sectors that witnessed notable selling pressure included media and real estate.
On the Sensex, the top losers were prominent names from the banking and financial sectors. Kotak Mahindra Bank shares fell by 1.86%, while Axis Bank declined by 1.44%. Other significant losers included Bajaj Finance, Bajaj Finserv, and IndusInd Bank. On the flip side, Mahindra & Mahindra (M&M), Power Grid, and Tata Motors managed to buck the trend and close with gains, providing some cushion to the indices.
Broader Market and Global Context
The weakness was not limited to the large-cap indices. Broader market indices also ended lower, indicating widespread risk-off sentiment. The BSE Midcap index dipped by 0.29%, and the BSE Smallcap index fell by 0.27%.
Globally, Asian markets exhibited a mixed trend, while European shares opened on a weaker note. Investors globally are exercising caution ahead of key economic data releases and central bank commentaries. The domestic market sentiment has been dampened by concerns over rich valuations and a lack of immediate positive triggers. Analysts note that the market is in a consolidation phase after a strong rally, with participants booking profits at higher levels.
The combined market capitalization of firms listed on the BSE dropped to nearly Rs 466 lakh crore from Rs 467.19 lakh crore in the previous session, eroding investor wealth.
Outlook and Technical Analysis
Market experts suggest that the current phase is one of consolidation and profit-booking. The consistent closing below key levels like 25,700 for the Nifty signals a shift in short-term momentum. Traders are now closely watching the next support levels. A sustained break below these could invite further selling pressure.
The immediate focus for the market will be on domestic macroeconomic indicators, global commodity price movements, especially crude oil, and foreign institutional investor (FII) activity. The absence of major positive news flow is likely to keep the markets range-bound with a negative bias in the near term. Investors are advised to adopt a selective stock-picking approach and avoid aggressive bets until a clear directional trend emerges.
