Benchmark stock market indices ended the trading session on Tuesday with slight losses, largely dragged down by a decline in key sectors such as IT, metal, and public sector banking stocks. The S&P BSE Sensex dropped by 67.30 points, closing at 78,472.87, while the NSE Nifty50 experienced a loss of 23.35 points, settling at 23,730.10. Despite some strong performances in specific sectors, the overall sentiment remained cautious, as several market segments struggled to gain momentum.
Aditya Gaggar, Director of Progressive Shares, explained that the market had a mixed performance during the session. After a somewhat subdued opening, the indices initially saw an upward move, propelled by a surge in the Auto and IT sectors. However, the key resistance level of 23,850 proved to be a hurdle, and the index reversed its course, ultimately closing at 23,727.65, marking a loss of 25.80 points. On the positive side, Tata Motors emerged as one of the top gainers, appreciating by 1.79%. Other strong performers included Adani Enterprises, which rose by 1.41%, Eicher Motors, which saw a gain of 1.04%, Nestlé, which increased by 0.86%, and BPCL, which advanced by 0.85%.
On the other hand, several major stocks saw significant declines. Power Grid Corporation was the biggest loser, dropping by 1.68%, followed by JSW Steel, which lost 1.41%. Other stocks in the red included SBI Life Insurance, down by 1.28%, Titan, which saw a 1.12% dip, and Infosys, which lost 1.09%.
Gaggar pointed out that the auto and FMCG sectors were the standout performers on the sectoral front, while the metal and PSU banks sectors suffered the most significant corrections. In the broader market, midcap stocks generally followed the movement of the frontline indices, while smallcap stocks showed some resilience, managing to close in positive territory. He noted that the index continues to trade within a well-defined range of 23,650 to 23,850, suggesting that a breakout in either direction would be crucial for determining the next major move for the market.
In terms of sectoral performance, most indices on the National Stock Exchange (NSE) ended the day in the negative. The sharpest declines were seen in the Nifty Metal and Nifty Financial Services Ex-Bank indices, which fell by 0.73% and 0.62%, respectively. Other indices that recorded losses included the Nifty IT and Nifty Media, both of which dropped by 0.45%, and the Nifty Midsmall Financial Services index, which saw a decline of 0.39%. Additionally, sectors such as Nifty Midsmall IT & Telecom (-0.31%), Nifty Realty (-0.28%), Nifty Consumer Durables (-0.28%), Nifty Midsmall Healthcare (-0.14%), and Nifty Financial Services (-0.12%) all experienced negative movements.
Despite the overall downward trend, a few sectors stood out as positive performers. Nifty Oil & Gas led the pack, rising by 0.54%, buoyed by strong demand for energy-related stocks. The Nifty FMCG index also performed well, climbing by 0.44%, supported by strong consumer staples demand. The Nifty Auto sector saw a marginal rise of 0.45%, reflecting the ongoing strength in the automotive market, while Nifty Private Bank experienced a modest gain of 0.17%, providing some relief amidst the broader market's decline.
Overall, the session reflected a market in consolidation, with certain sectors outperforming others and broader indices facing resistance. Traders and investors continue to monitor global and domestic factors that could drive market direction in the coming days, including corporate earnings, inflationary trends, and any potential policy shifts from the Reserve Bank of India. The mixed performance across sectors suggests that market participants are cautious and are waiting for clearer signals on the economy’s trajectory before making further commitments.
