Nifty and Sensex Close Flat Amid Declines in Realty and Pharma Sectors
The Indian stock market indices Nifty and Sensex ended flat on [Date] as realty and pharma shares experienced a notable decline. Despite the initial gains, profit booking led to a subdued close.
Key Highlights of Nifty and Sensex Performance
- Market Closure: Both Nifty and Sensex closed almost unchanged, with minor declines of 0.03% each, at 79,897 and 24,316, respectively.
- Advances and Declines: Market breadth showed 1,958 shares advancing, 1,438 shares declining, and 83 shares remaining unchanged.
- Sector Performance: The realty index was the worst performer, dropping over 1%. Major contributors to this decline were Macrotech Developers and Brigade Enterprises.
- Top Losers: Tata Consumer Products, Bajaj Finance, Divis Labs, M&M, and NTPC led the list of top losers.
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Midcap and Smallcap Indices Outperform
The broader markets, particularly the midcap and smallcap indices, displayed resilience, outpacing the benchmark indices. The midcap index rose by 0.3% and the smallcap index surged by 0.6%. Both indices have shown significant gains since the start of June, with the midcap index up by over 10% and the smallcap index increasing nearly 13%.
Focus on IT Stocks
The IT sector attracted attention as Tata Consultancy Services (TCS) prepared to announce its Q1 FY25 results. According to Moneycontrol’s compilation of estimates from 10 brokerage firms, TCS’s revenue was expected to increase by 1.6% quarter-on-quarter to Rs 62,190 crore. The BSNL deal is anticipated to contribute to TCS’s growth.
Also Read : TCS Q1 Results: Net Profit Surges 9% to Rs 12,040 Crore; Declares Rs 10 Dividend
Market Sentiment and Expert Opinions
Investors are now turning their focus to the upcoming earnings season and the eagerly awaited 2024 Union Budget on July 23. Despite the current correction, market experts suggest that the sentiment remains positive, with potential for further rally.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the strong undercurrent of the bull market both globally and in India. He noted that the increase in mutual fund industry’s AUM and record monthly SIPs would continue to support the market. However, he cautioned that investors should be prepared for corrections.
Technical Insights
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, highlighted the key support and resistance levels for Sensex and Nifty. She indicated that the indices need to sustain above crucial support zones to maintain a positive bias.
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Market Outlook
As markets digest the current correction, the broader outlook remains optimistic. Investors are advised to adopt a buy-on-dips strategy while being prepared for intermittent corrections.
Top Gainers and Losers
Top Nifty gainers included BPCL, Coal India, ONGC, ITC, and Tata Motors. On the flip side, Tata Consumer Products, Bajaj Finance, Divis Labs, M&M, and NTPC were the top losers.
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