Benchmark stock market indices closed lower on Tuesday as investors took profits, with IT and consumer durables sectors experiencing declines. The S&P BSE Sensex finished 313.70 points lower at 84,587.01, while the NSE Nifty50 dropped 74.70 points to close at 25,884.80.
According to Vinod Nair, Head of Research at Geojit Investments Limited, the domestic market saw significant volatility on the monthly expiry day due to a weakening INR and continued FII outflows. Investors remained cautious, awaiting clarity on potential rate cuts in the upcoming FOMC meeting and progress on the Indo-US trade deal. Despite some positive signals, selling pressure lingered around the 26,000 level. However, strong domestic fundamentals, including a robust earnings outlook for the second half of the year, limited the downside. Notably, PSU banks and real estate stocks outperformed, buoyed by a resurgence in home loan demand and increasing market share for PSU banks.
Bharat Electronics led the top gainers with a 1.57% increase, followed by State Bank of India, up 1.44%. Tata Steel and Eternal also ended higher, gaining 0.64% and 0.53%, respectively. Bharti Airtel rounded up the list of top gainers, climbing 0.46%.
On the other hand, Trent was the biggest loser of the day, dropping 1.59%, followed by Tech Mahindra Ventures (TMPV) down 1.62%. Infosys and Power Grid declined by 1.25% and 0.99%, respectively, while HDFC Bank slipped 0.93%, contributing to the market’s decline.
Technical Analyst Vatsal Bhuva from LKP Securities noted that Nifty formed a bearish candlestick pattern for the third consecutive session, struggling to surpass 59,200 due to selling pressure. The Relative Strength Index (RSI) showed a bearish crossover on the daily chart, indicating a potential sideways to mildly bearish trend over the next few sessions. The index is likely to retrace towards the 20-day Exponential Moving Average (EMA) at 58,300–58,400, with immediate support at 58,300 and resistance at 59,200.
(Note: The opinions and recommendations expressed in this article are solely those of the experts/brokerages mentioned and do not represent the views of the India Today Group. It is advisable to consult with a qualified broker or financial advisor before making any investment decisions.)