Benchmark stock market indices concluded the trading session with negligible changes following an initial surge to record highs.
At the closing bell, the S&P BSE Sensex edged up by 36.45 points to settle at 77,337.59, while the NSE Nifty50 ended 41.90 points lower at 23,516.
Most of the broader market indices also finished the session on a subdued note as volatility increased.
The benchmark indices would have incurred more substantial losses if not for the robust performance of bank stocks, which surged significantly, counterbalancing declines in state-owned enterprises and energy stocks.
Nifty Bank soared by nearly 2%, while Nifty Financial Services saw a gain of 1.6%. However, Nifty Realty tumbled by almost 3%, emerging as the top loser among sectoral indices; Nifty Consumer Durables and Nifty Oil & Gas also witnessed sharp declines.
The top performers on the Nifty50 included Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank, and Kotak Mahindra Bank.
Conversely, the top laggards were Titan, Maruti, Bharti Airtel, Bajaj-Auto, and BPCL.
Reflecting on the market's performance, Ajit Mishra, SVP of Research at Religare Broking Ltd, commented, "The markets exhibited volatility and closed nearly unchanged amidst mixed signals. Commencing on a flat note, the Nifty witnessed significant fluctuations throughout the day before settling near the 22,519 mark. While profit-taking was evident across most sectors, the strength in the banking and IT sectors helped mitigate overall losses. Following days of robust performance, broader indices experienced declines of approximately 0.5% to 1%."
"Rotational buying across key sectors is bolstering a positive market sentiment, albeit without clear conviction. Hence, we recommend maintaining a 'buy on dips' strategy in the index and focusing on selective stock picks based on sectoral or thematic considerations. Banking has attained new highs and is expected to sustain momentum, while renewed interest in IT is anticipated following recent consolidation," Mishra added.
Meanwhile, Vinod Nair, Head of Research at Geojit Financial Services, remarked, "The domestic market commenced on a strong note driven by early favorable monsoon forecasts. However, with the monsoon's recent sluggish progress, the market is pausing. Concurrently, the banking sector, which has been a laggard year-to-date, is outperforming, buoyed by a recovery in FII inflows amid continued decline in the US 10-year yield."
"On the global front, UK inflation has eased back to the BOE's target of 2%, and attention is now focused on the BOE's policy decision scheduled for tomorrow," Nair concluded.
