Indian markets witnessed a lackluster Tuesday session, with the Nifty 50 oscillating around 21,400 and the Sensex hovering near 71,300. After a promising start, the indices succumbed to profit-booking in key sectors like IT and steel, leading to a muted closing.
Nifty 50:
The Nifty 50 opened higher at 21,450 but gradually slipped throughout the day to close at 21,397.85, down 0.15%.
The broader market witnessed a similar trend, with the Nifty Midcap 50 and Nifty Smallcap 50 closing marginally lower by 0.18% and 0.21%, respectively.
Sensex:
The BSE Sensex followed a similar trajectory, opening at 71,420 and closing at 71,288.03, down 0.11%.
Sectoral performance was mixed, with IT and steel stocks leading the decline. The Nifty IT index plunged 1.30%, while the Nifty Metal index fell 1.18%.
Conversely, the Nifty FMCG index emerged as the top performer, gaining 0.87%, followed by the Nifty Pharma index, which rose 0.70%.
Key Factors Driving the Market:
Profit Booking in IT Stocks: After a strong run in recent weeks, IT stocks witnessed profit booking on Tuesday. Infosys, TCS, and Wipro were among the major losers, falling 1.85%, 1.70%, and 1.45%, respectively.
Global Market Cues: Asian markets traded mixed on Tuesday, with the Nikkei 225 in Japan and the Hang Seng Index in Hong Kong closing lower, while the Shanghai Composite Index ended in the green. This cautious sentiment weighed on the Indian market.
Macroeconomic Concerns: Concerns over rising inflation and potential interest rate hikes by the US Federal Reserve continued to dampen investor sentiment.
Sectoral Performance:
IT: As mentioned earlier, IT stocks faced profit booking, with Infosys, TCS, and Wipro leading the decline. Other notable losers in the sector included Tech Mahindra (-1.98%) and HCL Tech (-1.75%).
Steel: The steel sector also witnessed profit booking, with Tata Steel (-2.10%) and JSW Steel (-1.80%) leading the losses. Concerns over global steel demand and rising raw material costs weighed on the sector.
Media: The media sector also traded in the red, with Zee Entertainment (-2.35%) and Network 18 (-2.15%) being the major losers.
FMCG & Pharma: Conversely, FMCG and pharma stocks bucked the trend and ended higher. Hindustan Unilever (+1.80%), Nestle India (+1.65%), Cipla (+1.50%), and Sun Pharma (+1.25%) were among the top gainers in these sectors.
Outlook for Tomorrow:
The market outlook for tomorrow remains uncertain. While profit booking may continue in some sectors, positive developments like favorable global cues or strong earnings announcements from key companies could lift the indices. Investors will also keep an eye on macroeconomic data releases and global market movements.
Additional Points:
The rupee remained relatively stable against the US dollar, trading at around 83.20.
Foreign institutional investors (FIIs) were net sellers in the Indian market on Tuesday, offloading equities worth Rs 1,200 crore.
Domestic institutional investors (DIIs) emerged as net buyers, pumping in Rs 1,000 crore.
Overall, Tuesday’s session was a mixed bag for the Indian market. While profit booking weighed on some sectors, others managed to end in the green. The outlook for tomorrow remains to be seen, with investors keeping an eye on various factors before making their decisions.
