Contents
Indian Stock Market Snaps Four-Day Winning Streak as Investors Book Profits Amidst Lack of Local Triggers
The Indian stock market witnessed a decline on Monday, with the BSE Sensex and NSE Nifty-50 indices retreating from their lifetime peaks due to profit-booking and weakness in select sectors, despite positive global cues and renewed foreign fund inflows. The BSE Sensex fell 452.4 points to close at 83,606, while the NSE Nifty-50 shed 120.7 points to end at 25,517. The broader market outperformed, with the Nifty Midcap 150 rising 0.6% and the Nifty Smallcap 250 gaining 0.8%.
The Indian stock market, which had been on a four-day winning streak, snapped its rally on Monday as investors looked beyond positive global cues and renewed foreign fund inflows to book profits in the absence of an express local trigger. The BSE Sensex and NSE Nifty-50 indices, which had risen 2.7% over the past four sessions, retreated from their lifetime peaks, with the Sensex falling 452.4 points, or 0.54%, to close at 83,606, and the Nifty-50 shedding 120.7 points, or 0.47%, to end at 25,517. This decline was largely due to profit-booking and weakness in select sectors, such as auto and financial stocks, which dragged the benchmarks lower. The Nifty Auto index slipped 0.5%, while Nifty Financial Services fell 0.3%.
Market Performance and Trends
Despite the decline in the benchmark indices, the broader market outperformed, with the Nifty Midcap 150 rising 0.6% and the Nifty Smallcap 250 gaining 0.8%. Out of 4,290 stocks traded on the BSE, 2,362 advanced while 1,750 declined. India VIX, which gauges volatility, climbed 3.20% to 12.79. In other Asian markets, Japan’s Nikkei gained 0.8%, while Hong Kong’s Hang Seng lost 0.8%. Among sectors, Nifty PSU banks, consumer durables, and pharma were the top gainers.
Key Highlights and Trends
Some of the key highlights and trends in the market include:
* The Nifty Auto index slipped 0.5%, while Nifty Financial Services fell 0.3%.
* The Nifty Midcap 150 rose 0.6%, while the Nifty Smallcap 250 gained 0.8%.
* India VIX climbed 3.20% to 12.79.
* Foreign portfolio investors (FPIs) net sold shares worth ₹831.5 crore on Monday.
* Domestic institutional investors (DIIs) bought shares worth ₹3,497 crore on Monday.
* The top gainers on the Nifty included Trent, BEL, SBI, IndusInd Bank, and Jio Financial Services.
* Tata Consumer Products and Kotak Mahindra Bank were among the major laggards.
According to Prashanth Tapse, senior VP (research) at Mehta Equities, “Last week, markets surged sharply driven by robust global signals and buying from domestic institutions, but profit-booking emerged, dragging down the benchmark indices.” Shrikant Chouhan, head of equity research at Kotak Securities, believes that 25,470/83,500 will act as a key level to watch. Below 25,470/83,500, the markets could see a further correction toward 25,375-25,300/83,200-83,000.
Trade Negotiations and Future Outlook
Trade negotiations with the US will remain a key focus in the near term, with the deadline for tariff settlement approaching. According to Tapse, “The focus will be on tariff settlement with the US government, as the deadline is approaching and India has yet to conclude the agreement, which could create uncertainty among the investors.” Chouhan notes that a sustained move above 25,470/83,500 could push the market up to 25,600/83,900, with further upside potentially lifting the market to 25,700/84,200.
Conclusion and Future Prospects
In conclusion, the Indian stock market snapped its four-day winning streak on Monday due to profit-booking and weakness in select sectors, despite positive global cues and renewed foreign fund inflows. While the broader market outperformed, the benchmark indices retreated from their lifetime peaks. The market will continue to be driven by global cues, domestic institutional buying, and trade negotiations with the US. As Chouhan notes, “On the flip side, a sustained move above 25,470/83,500 could push the market up to 25,600/83,900. Further upside may also continue, potentially lifting the market to 25,700/84,200.”
Conclusion: The Indian stock market is expected to remain volatile in the near term, driven by global cues, domestic institutional buying, and trade negotiations with the US. Investors will need to keep a close eye on the market trends and be prepared for any potential corrections or rallies.
Keywords: Indian stock market, BSE Sensex, NSE Nifty-50, foreign fund inflows, profit-booking, trade negotiations, US tariffs, domestic institutional buying, global cues, market trends, volatility.
Hashtags: #IndianStockMarket #BSESensex #NSWNifty50 #ForeignFundInflows #ProfitBooking #TradeNegotiations #USTariffs #DomesticInstitutionalBuying #GlobalCues #MarketTrends #Volatility.
Source link
