Indian Markets See High Volatility: Nifty and Sensex Close with Marginal Declines
Indian markets experienced high volatility after investors booked profits on the last trading session of the week. Both Nifty and Sensex closed with marginal declines, though the Nifty 50 index touched a new high during the opening session.
Market Performance
The Nifty 50 index closed at 23,501.10 points, down 65 points, while the BSE Sensex closed at 77,209, down 269 points. Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic market saw minor profit booking due to concerns over the slow progress of the monsoon, affecting the FMCG sector. The heatwave in Northern India boosted consumer durables stocks.
Global Market Influence
Global markets were subdued as weak guidance from Accenture led to profit booking in US tech stocks. However, domestic IT stocks saw buying interest. Attention is now on the upcoming GST meeting, where potential GST rate changes are being discussed.
Stock Performance
Significant selling pressure was seen in heavyweight stocks like HDFC Bank, Reliance Industries, L&T, HUL, Axis Bank, and Bajaj Finance. Top gainers in the Nifty 50 included Bharti Airtel, LTIMindtree, Adani Ports, Hindalco, and Infosys. Major losers included Ultratech Cements, Adani Ports, BPCL, Tata Motors, and Tata Consumer Products. In the Nifty 50 index, 32 stocks declined while 18 gained.
Broader Market and Currency
In the broader market, all indices closed with declines except Nifty Midcap 50 and Nifty Midcap Select. Varun Aggarwal, MD of Profit Idea, mentioned that the rupee faced a slight negative bias against the US Dollar due to strong US treasury yields and disappointing manufacturing and services PMI data from Germany and the Eurozone.
Oil Market
WTI crude oil futures rose for the fourth consecutive day, supported by heightened geopolitical tensions in Gaza and Lebanon. US crude inventories showed a surprise decline last week, further boosting oil prices amid expectations of increased travel demand over the US Fourth of July holiday period.
