India’s Nifty 50 and BSE Sensex benchmark indices opened Monday’s trading session on a weak note, hinting at a caution among investors at home, even as largely positive cues prevailed globally. At midday, both indices were trading in mostly negative territory, as movement between sectors largely continued to steer the overall market.
The Nifty 50, the barometer of India’s top 50 companies was trading at 25550, down about 87 points or 0.34 percent lower from its last close. The BSE Sensex, which is an index of 30 key stocks, was at 83,787, losing over 272 points or 0.32 percent. This subdued start follows on from a week in which both indices enjoyed robust increases, with the Nifty 50 closing almost 2.3% up and the Bank Nifty rallying more than 2% as of June 27th.
PSU Banks Shoiled, Auto and Financials Under Pressure
Going deeper to understand this sectoral performance was a different story. The Nifty PSU Bank index was the biggest gainer, rising by a significant 2.13 percent, supported by reports on subsidiary monetization and improving fundamentals. Private banks were in the green on the Nifty – stocks including the Bank of India and
Bank of Maharashtra gained more than 2% apiece.
In comparison, the Nifty Auto index was one of the worst performers, losing 0.48 percent led lower by heavyweights with Hero MotoCorp falling more than 2%. Even the much broader Nifty Financial Services index was down 0.1%, although a few PSU banks were resisting the pattern. FMCG and IT sectors saw an equal amount of profit booking, which added to negative bias across the benchmarks.
Sector-wise, the unexpected movement in Jio Financial Services (JIOFIN) led the Nifty gainers along with State Bank of India (SBIN) to deliver a strong performance, while selling interest in Hero MotoCorp and Tata Consumer Products was witnessed. On the Sensex, SBI and L&T were among the early gainers, while Kotak Mahindra Bank, NTPC, and Bharti Airtel dragged the index lower.
Global Cues and Macro Economic Indicators
The wariness in the home market comes even as global markets, including equities and commodities, have performed strongly. Otherwise, major Asian indices such as Japan’s Nikkei 225, Australia’s ASX 200, and South Korea’s Kospi were trading in positive territory. US markets had also closed higher on Friday, with the Dow Jones, S&P 500, and Nasdaq all posting gains, driven by easing geopolitical tensions and optimism surrounding potential trade deals.
The Indian Rupee appreciated marginally against the US dollar. As of this morning, the Rupee had appreciated by 6 paise to 85.44/$, aided by a softer dollar and a fall in crude oil prices. Brent crude oil, a crucial ingredient of India’s import bill, was around $66.62 per barrel, adding to the positive sentiment on the forex front.
Foreign Institutional Investors (FII) & Domestic Institutional Investors (DII) activity
Foreign Institutional Investors (FIIs) have been net buyers in the Indian equity market in the last two months, signaling unabated faith in the Indian growth story. On June 27, FIIs were net buyers at ₹1,397.02 crore while Domestic Institutional Investors (DIIs) were net sellers at ₹588.93 crore. This colorful dance – the push and pull between our FII friends and DII dance partners – largely remains the biggest influencer of market direction.
Outlook and Key Areas of Resistance
According to market analysts, the overall bullish momentum in the Indian market is still intact and the analysts are still recommending a “buy on dip” approach. For the Nifty, immediate support levels are at 25,500-25,400 and resistance is at 25,750, having a potential to test 26,000 on a decisive breakout. For Bank Nifty, major support is seen between 57,000 and 56,700, while resistance is at 57,500-57,800.
Also check:- Indian Equities Edge Higher Amidst Mixed Global Signals, Nifty Eyes 25,400
As always, investors will be highly attuned to global economic events, especially news related to the conclusion of international trade agreements and changes in commodity prices. Domestically, the ongoing flow of corporate earnings reports and the next release of key macroeconomic data will be the major sources of direction to the market in the coming session.
