1 week ago
Sensex, Nifty Erase Early Gains as Sectoral Divergence Weighs
India’s main stock-market indexes started the day higher but finished lower.
Investors moved money into banking shares and metals.
Technology and some consumer stocks lost value.
Technology companies were affected by concerns about paused United States visa appointments.
Investors worried this could increase costs and reduce company profit margins.
Some traders also sold heavyweight stocks to book profits.
The broader midcap market performed better and the Nifty Midcap 100 reached a record high.
Analysts said the Nifty may remain choppy unless it moves clearly above 24,350.
Sensex and Nifty surrendered early gains and ended lower as sectoral divergence affected trading.
Banking stocks and metals gained, supported by easing bond yields, lower inflation concerns and better metal realisation prospects.
Information technology stocks weakened after the United States paused visa appointments amid an immigration crackdown.
Profit booking in heavyweight shares and resistance at higher levels contributed to the market reversal.
Nifty Midcap 100 reached a record high, while Nifty remained range-bound between support near 24,130 and resistance at 24,350.
- Who
- The Sensex and Nifty, along with investors and analysts including Vinod Nair, Ajit Mishra, Hariselvan Radhakrishnan and Rupak De.
- What
- The benchmark indexes erased their early gains and settled lower, while the Nifty Midcap 100 reached a record high.
- Where
- The Indian stock market.
- When
- During the reported trading session, referred to as today.
- Why
- Sectoral rotation, weakness in information technology stocks, profit booking in heavyweight shares and resistance at higher levels offset support from banking stocks, metals, lower crude prices and easing bond yields.
Factors Supporting the Market
Factors Pressuring the Market
Sector performance
Factors Supporting the Market
Investors rotated toward financials and the broader market, while banking stocks benefited from easing domestic bond yields.
Factors Pressuring the Market
Information technology and consumer stocks remained weak, creating sectoral divergence and weighing on the benchmark indexes.
Global and macroeconomic signals
Factors Supporting the Market
Tempered United States sanctions on Iran reduced inflation concerns, while lower crude prices and global bond yields supported risk sentiment.
Factors Pressuring the Market
The pause in United States visa appointments amid an immigration crackdown raised concerns about margin pressure for technology companies.
Trading dynamics
Factors Supporting the Market
Strength in financials and midcap shares helped the Nifty Midcap 100 reach a record high.
Factors Pressuring the Market
Profit booking in heavyweight stocks and selling near higher resistance levels caused the Sensex and Nifty to reverse their early gains.
Key facts
- Market outcome
- Sensex and Nifty ended lower after failing to sustain early gains.
- Strong sectors
- Banking stocks and metals gained during the session.
- Weak sectors
- Information technology and consumer stocks remained under pressure.
- Major laggards
- Bharti Airtel, Reliance Industries, Larsen & Toubro, Infosys, Mahindra & Mahindra, NTPC, Tata Consultancy Services, Power Grid Corporation of India and Sun Pharmaceutical Industries.
- Broader market
- The Nifty Midcap 100 reached a record high.
- Nifty support
- A fall below 24,130 could lead to a correction toward 23,900 and 23,700, according to Rupak De.
- Nifty resistance
- Resistance was identified at 24,350; a sustained move above that level could improve the outlook.
- Upcoming indicator
- Investors were awaiting United States Core PCE data for further guidance on interest rates.
Quotes
Vinod Nair
Head of Research at Geojit Investments
“A fall below 24,130 could trigger a serious correction, potentially dragging the index towards 23,900 and 23,700. On the higher end, a rock-solid resistance is placed at 24,350. Only a sustained move above 24,350 could change the current perception. Until then, choppiness is likely to prevail.”
businesstoday.in
“Inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realisation prospects”
businesstoday.in
Sources
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