Stock market saw the Sensex reaching a new all-time high of 75,636.50 before retracting and closing 8 points lower at 75,410.39. Similarly, the Nifty 50 hit its fresh all-time high of 23,026.40 before ending the day 11 points lower at 22,957.10.
Indian Stock Market Ends Flat Amid Profit Booking and Global Weakness
Today’s trading session saw the Indian stock market benchmarks, the Sensex and the Nifty 50, closing flat with a negative bias. The indices struggled to maintain their record-high levels amidst profit booking and weak global cues.
Sensex and Nifty 50 Performance
The Sensex reached a fresh all-time high of 75,636.50 during the session but failed to sustain the gains, closing 8 points lower at 75,410.39. Similarly, the Nifty 50 touched its all-time high of 23,026.40 before ending the day 11 points lower at 22,957.10.
Impact of US Federal Reserve’s Policy
The waning prospects of rate cuts by the US Federal Reserve (Fed) this year weighed on investor sentiment. The minutes of the May policy meeting revealed that Fed officials are still cautious about inflation moving sustainably towards the Fed’s target of 2 percent. Some officials even indicated a willingness to tighten policy further if necessary.
Performance of Midcap and Smallcap Indices
Outperforming the Sensex, the BSE Midcap index ended 0.23 percent higher at 43,519.44, reaching a fresh record high. On the other hand, the BSE Smallcap index hit a new high but closed 0.20 percent lower at 47,996.45.
Top Gainers and Losers in Nifty 50
Among the Nifty 50 gainers were HDFC Bank, Bharti Airtel, BPCL, L&T, and UltraTech Cement. Adani Ports, Tech Mahindra, Mahindra and Mahindra, JSW Steel, and Titan ended as the top losers.
Sectoral Performance
Nifty Bank and Private Bank indices rose by 0.42 percent and 0.41 percent, respectively, while the PSU Bank index dropped by 0.08 percent. Sectors such as FMCG, Realty, IT, and Healthcare witnessed significant losses, while Nifty Media, Financial Services, and Oil & Gas sectors saw gains.
Expert Insights and Technical Analysis
Vinod Nair, Head of Research at Geojit Financial Services, highlighted subdued global market sentiments due to the hawkish stance of the US Federal Reserve. Technical analyst Rajesh Bhosale advised traders to maintain a positive bias but remain cautious of potential volatility. Bhosale suggested monitoring key levels and adopting a selective trading approach ahead of the key election results and F&O expiry.
Trading Strategy
As the market approaches crucial levels amid global uncertainties, traders are advised to exercise caution and adopt a selective trading strategy. With heightened volatility expected in the coming week, it’s essential to monitor key levels closely and plan trades accordingly. Maintaining a balance between risk and opportunity is crucial in navigating the evolving market landscape.
FAQs
What led to the flat closing of the Indian stock market today?
The Indian stock market ended flat with a negative bias due to profit booking at record-high levels and weak global cues, particularly concerns about the US Federal Reserve’s policy stance.
Which sectors performed well and which ones witnessed losses?
Sectors such as Nifty Media, Financial Services, and Oil & Gas saw gains, while FMCG, Realty, IT, and Healthcare sectors witnessed significant losses.
What is the outlook for the Indian stock market in the coming week?
Traders should expect heightened volatility in the coming week, particularly ahead of key election results and the F&O expiry. It’s crucial to monitor key levels closely and plan trades selectively to manage risks effectively.
Stay updated with the latest News and announcements regarding the Latest in Business, Finance, sports, education, real estate, automobiles and more by regularly visiting Indiatrends360
