The Domestic equity market witnessed a volatile trading session on Tuesday with Sensex shedding over some 60 odd points and Nifty shedding over 2% towards the closing.
– Indian equity benchmark indices concluded Tuesday’s trading session on a flat note, as investors engaged in profit booking in banking stocks, closely monitored developments in US-China trade talks, and reacted to a mix of global cues. Despite a volatile day, both the Sensex and Nifty50 managed to cling to their previous closing levels.
The Sensex, after dipping to an intraday low of 82,240.4, ultimately settled at 82,391.72, marking a marginal decline of 53.5 points, or 0.06 percent. Similarly, the Nifty50 closed at 25,104.25, eking out a gain of just 1.05 points.
Broader markets presented a slightly more optimistic picture. The Nifty Midcap100 index concluded the day flat with a positive bias, while the Nifty Smallcap100 index saw a modest rise of 0.14 percent, indicating resilience among smaller capitalization stocks.
Sectoral Performance: Realty Drags, IT Shines
Sectoral indices, however, exhibited divergent trends. The Nifty Realty sector emerged as the biggest laggard, shedding 1.14 percent. This decline was primarily driven by selling pressure in major players like Prestige Estates Projects, Macrotech Developers, Anant Raj, DLF, and Brigade Enterprises. Other sectors that closed in the red included Nifty Auto, Bank, Financial Services, and Oil & Gas, reflecting broad-based profit booking in these segments.
Conversely, the IT sector offered some support. Among the 30 Sensex constituents, 16 stocks ended lower. Notable losers included Maruti Suzuki, Asian Paints, Bajaj Finance, Tata Steel, ICICI Bank, Bajaj Finserv, and Reliance Industries. However, the market found support from gains in technology giants such as Tech Mahindra, Infosys, HCLTech, along with Tata Motors, IndusInd Bank, Ultratech Cement, and TCS.
Volatility Index Signals Reduced Fear
In a positive sign for market sentiment, the India VIX, often referred to as the “fear index,” saw a significant drop of 4.61 percent, settling at 14.01 points. This decline in volatility suggests that investor anxiety has somewhat eased, even as the market navigates a period of consolidation.
The flat closing of the Indian benchmarks underscores a cautious approach by investors as they await clearer signals from global trade negotiations and assess domestic corporate earnings. The mixed sectoral performance highlights a selective buying trend, with defensive sectors like IT providing stability amidst broader market adjustments.
