Why Did the Sensex and Nifty End Lower After Four Days of Gains?

Mumbai, June 30 (NationPress) After witnessing a rally for four consecutive sessions, the Indian stock markets paused on Monday as investors seized profits in the absence of robust domestic signals.

The Sensex fell by 452 points, translating to a decline of 0.54 percent, closing at 83,606.46. Throughout the day, it fluctuated with an intra-day high of 84,099.53 and a low of 83,482.13.

Similarly, the Nifty index followed suit. The 50-share index commenced at 25,661.65, peaked at 25,669.35, and concluded at 25,517.05, marking a decrease of 120.75 points or 0.47 percent.

In contrast, broader market indices fared better. The Nifty Midcap100 increased by 0.6 percent, while the Nifty Smallcap100 rose by 0.52 percent, highlighting persistent investor enthusiasm toward mid- and small-cap stocks.

Among the stocks listed in the Sensex, firms like Axis Bank, Kotak Mahindra Bank, Maruti, Bajaj Finance, Reliance Industries, Tata Steel, and Bharti Airtel were significant decliners.

Meanwhile, on the positive side, Trent, State Bank of India, Bharat Electronics, Titan, Bajaj Finserv, and Eicher Motors attracted buying interest.

Sector performance was mixed. PSU banks led the gains, with the Nifty PSU Bank index surging by 2.66 percent.

Stocks like Maharashtra Bank, Punjab National Bank, Bank of Baroda, Union Bank of India, Canara Bank, UCO Bank, Indian Bank, and Punjab & Sind Bank experienced notable increases.

Other sectors, including IT, Consumer Durables, Pharma, Healthcare, Media, and Energy, also ended positively.

However, some key sectors faced losses. The Nifty Auto, Bank, Financial Services, FMCG, Metal, Realty, Private Bank, and Oil & Gas indices concluded lower.

Vinod Nair, Head of Research at Geojit Financial Services, noted that while global sentiment is shifting positively due to easing tensions in the Middle East and optimism surrounding a US trade deal, Indian markets have taken a pause following the recent surge.

He further mentioned that investors are shifting their attention toward upcoming corporate earnings, with mid- and small-cap stocks showing resilience in anticipation of favorable results driven by consumer demand and enhanced margins.

In the meantime, the India VIX, which gauges market volatility, increased by 3.2 percent, settling at 12.78.

The Rupee traded weak at approximately 85.70, declining by 0.21 percent, as capital market weakness and recent rupee gains prompted profit booking and long unwinding.

“The downward pressure came just ahead of a crucial week featuring significant US data releases and the conclusion of the 90-day extended tariff deadline. The rupee is expected to remain volatile within a range of 85.35 to 86.00,” stated Jateen Trivedi of LKP Securities.