Indian Stock Markets Dip After Record Highs

Indian stock indices, Sensex and Nifty, closed half a percent lower today due to profit booking. This follows a period where both indices touched fresh lifetime highs.

Market Fluctuations

Ajit Mishra, SVP of Research at Religare Broking, explained, “Markets fluctuated sharply within a range and ended up losing nearly half a percent, wiping out the gains from Tuesday’s session. After a flat start, Nifty plunged sharply in the early hours but a recovery in select heavyweights helped pare some losses as the day progressed.”

Profit Booking and Earnings Season

Vinod Nair, Head of Research at Geojit Financial Services, said, “The Indian market experienced profit booking ahead of the upcoming earnings season. The expectations are muted given moderation in sales growth due to slowdown in the world economy and consolidation in margins driven by high inflation.”

He also mentioned that the market is under temporary risk due to high budget expectations, which have been factored into the recent rally.

Future Outlook

Sensex and Nifty have accumulated 11-12 percent returns so far in 2024-25. Strong buys by both foreign and domestic institutional buyers have supported the stock markets. Market participants will closely monitor policy decisions from Finance Minister Nirmala Sitharaman, who will present the full Budget for 2024-25 on July 23.