Benchmark stock market indices closed lower on Thursday following a volatile session, with the metal sector stocks leading Sensex and Nifty down. The S&P BSE Sensex ended the day at 83,311.01, down by 148.14 points, while the NSE Nifty50 closed at 25,509.70, down 87.95 points.
Vinod Nair, Head of Research at Geojit Investments Limited, noted that despite supportive Asian markets, domestic markets experienced volatility with profit booking across various sectors due to continuous FII outflows.
Early optimism stemming from the inclusion of four Indian companies in the MSCI Global Standard Index and positive U.S. macro data was offset by weak domestic PMI readings, signaling a softening sentiment. Most sectors traded lower, except for IT stocks which remained strong due to in-line earnings and improvements in US macro data. Amid cautious trading, selective buying activity was observed in fundamentally sound companies driven by better-than-expected Q2 earnings.
Top gainers included Asian Paints, up by 4.76%, followed by Reliance Industries with a gain of 1.62%. On the other hand, Power Grid Corporation was the worst performer, declining by 3.15%. The Nifty Midcap 100 index fell by 0.95%, Nifty Smallcap 100 dropped 1.39%, and Nifty Midcap 150 declined 0.96%. India VIX, the volatility gauge, decreased by 1.91%.
Among the sectoral indices, only Nifty Auto and Nifty IT ended in positive territory. The rest, including Nifty Financial Services 25/50, Nifty FMCG, Nifty Media, Nifty Metal, Nifty Pharma, Nifty PSU Bank, Nifty Private Bank, Nifty Realty, Nifty Healthcare Index, Nifty Consumer Durables, and Nifty Oil and Gas, closed in the red.
Rupak De, Senior Technical Analyst at LKP Securities, highlighted that the Nifty fell below the critical 21EMA on the daily timeframe, indicating weakness. A significant trend reversal could occur if the index holds above 25,450 but might weaken further if it falls below this level. The opinions expressed in this article are those of the experts and do not reflect the views of the India Today Group. It is recommended to seek advice from a qualified financial advisor before making investment decisions.