The benchmark equity indices ended Tuesday’s trading session in the muted territory. The NSE Nifty 50 ends lower by just 8.70 points or 0.04% to settle at 22,453.30, while the BSE Sensex dropped 110.64 points or 0.15% to 73,903.91. Bank Nifty index ended lower by 32.80 points or 0.07% to settle at 47,545.45.
The broader indices ended in mixed territory, with gain led by Small-cap and Mid-cap stocks. Media and Metal stocks outperformed among the other sectoral indices while IT and Financial Services stocks shed.
Tata Consumers, Mahindra & Mahindra, BPCL, Bajaj Auto, and Adani Ports and SEZ are the top gainers on NSE Nifty 50 index whereas top laggards include Hero MotoCorp, Kotak Mahindra Bank, HCL Tech, ICICI Bank, and SBI Life Insurance.
The Indian Volatility Index (India VIX) closed down by 3.55 %.
“The domestic market took a breather today after achieving a fresh record high yesterday. Factors such as a rising dollar, increasing US bond yields, and a notable uptick in crude oil prices collectively dampened investor sentiment. Moreover, better-than-expected US manufacturing data raised worries about a potential delay in interest rate cuts,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair also said that, Despite these factors, mid and small-cap stocks continued their recovery rally, although concerns about high valuations lingered. Investors are eagerly anticipating guidance from the upcoming RBI monetary policy announcement for insight into near-term market direction.
Whereas Prashanth Tapse, Senior VP (Research), Mehta Equities said, Markets witnessed select profit taking in banking and IT stocks as caution prevailed throughout the session ahead of the RBI monetary policy decision on Friday. Rising US bond yields have led to FIIs fleeing Indian equities in recent sessions.
“However, we are seeing renewed optimism in the broader market in the mid & small cap stocks after the sharp correction over the past few months. There is a lot of money waiting on the sidelines to be invested in medium enterprises amid easing valuations and hopes of strong economic growth going ahead,” added Tapse.