Sensex and Nifty Close Flat Amid Mixed Sector Performance and Global Cues
On August 19, the benchmark indices Sensex and Nifty closed flat. Initially, the market was buoyed by the reduction in windfall tax on crude oil and favorable global cues but ended flat after the trading session.
Market Performance
At the end of the first day of the week, the Sensex fell 12 points to 80,425 while the Nifty rose 31 points to 24,573. Nifty Bank fell 149 points to 50,368, while the Midcap Index gained 105 points to 57,761.
Key Gainers and Decliners
The key gainers in the Nifty 50 included Hindalco, BPCL, Tata Steel, Shriram Finance, and LTIMindtree. Conversely, M&M, Bajaj Auto, Axis Bank, IndusInd Bank, and Tata Motors were notable decliners.
Sector Performance
The broader market indices showed positive momentum, with the BSE MidCap rising by 0.53% and the BSE SmallCap advancing by 1.13%. Sector performance was mixed, with the Nifty Auto index declining by 0.9% and the Nifty Private Bank index falling by 0.5%. However, the Nifty Metal and PSU Bank indices increased by 1.87% and 1.2%, respectively.
Expert Opinions
Ajit Mishra, SVP, Research, Religare Broking Ltd, said, “The recovery in global markets is supporting the index’s positive tone, but the underperformance of banking majors is limiting momentum.”
Vinod Nair, Head of Research, Geojit Financial Services, added, “The Indian market failed to catch up with the initial gains as there is a degree of profit booking witnessed in auto stocks due to a slowdown in demand. However, oil stocks gained momentum with the reduction in windfall tax on crude oil.”
Varun Aggarwal, MD, Profit Idea, noted, “Short-term market performance remains cautious amid weak Q1FY25 earnings and muted topline growth, though long-term prospects are seen as favorable.”
Global Market Insights
On the global front, the US unemployment claims dropped to 227,000, and the government deficit surged to USD 1.5 trillion in the first ten months of FY 2024. The UK’s GDP grew by 0.6% QoQ in Q2, with CPI inflation slightly up to 2.2% in July. The Euro Area industrial production decreased by 3.9% YoY in June, while Japan’s economy expanded at an annualized 3.1% in Q2. China reported a 2.7% increase in retail sales for July and a 5.1% rise in industrial production.
Later this week, investors will keep an eye on the US Fed chief Jerome Powell’s speech at the Jackson Hole symposium.
Doubts Revealed
Sensex -: Sensex is a stock market index in India that shows how the shares of 30 big companies are doing. It’s like a report card for the stock market.
Nifty -: Nifty is another stock market index in India, but it tracks the performance of 50 big companies. It’s also like a report card for the stock market.
Flat -: When we say the market closed ‘flat,’ it means there was very little change in the overall value of the stocks. They didn’t go up or down much.
Sector -: A sector is a group of companies that do the same kind of business. For example, all car companies are in the ‘Auto’ sector.
Global Cues -: Global cues are signals or hints from other countries’ markets that can affect our market. For example, if the US market goes up, it might make our market go up too.
Windfall Tax -: A windfall tax is a special tax that the government charges on companies that make a lot of extra money suddenly. It’s like an extra bill for making too much profit.
Hindalco -: Hindalco is a big company in India that makes aluminum and copper. It’s one of the companies whose stock price went up.
Tata Steel -: Tata Steel is a big company in India that makes steel. Its stock price also went up.
M&M -: M&M stands for Mahindra & Mahindra, a big company in India that makes cars and tractors. Its stock price went down.
Bajaj Auto -: Bajaj Auto is a big company in India that makes motorcycles and scooters. Its stock price also went down.
Profit Booking -: Profit booking is when investors sell their stocks to make a profit. This can sometimes make the stock prices go down.
Banking Majors -: Banking majors are the big banks in India. If they don’t do well, it can affect the whole stock market.
