Sensex, Nifty end marginally higher as late selling trims gains
Synopsis
Key Takeaways
BSE Sensex and NSE Nifty50 closed marginally higher on Thursday, 25 June, but surrendered a substantial portion of their intra-day advances as profit-booking in information technology, metals, and oil and gas stocks eroded early momentum. The session underscored a cautious market undertone despite headline indices finishing in the green.
Closing Numbers
The Nifty50 settled 34.35 points, or 0.14%, higher at 24,056, while the Sensex gained 109.25 points, or 0.14%, to close at 77,100.47. Both benchmarks had traded notably higher during the session before late selling trimmed those gains heading into the close.
Top Laggards and Sectoral Pressure
Among Nifty50 constituents, Oil and Natural Gas Corporation (ONGC), Power Grid Corporation of India, and Hindalco Industries were the top drags, pulling indices lower in the latter half of the session. The Nifty Metal index led sectoral losses, followed by Nifty IT and Nifty Oil and Gas, as investors booked profits across these segments.
Broader Market Underperforms
The broader market fared worse than the benchmarks. The Nifty MidCap index ended 0.55% lower, while the Nifty SmallCap index declined 0.47%, reflecting selective risk aversion beyond the large-cap space. Mid- and small-cap stocks have been under pressure amid a muted outlook for first-quarter corporate earnings.
What Supported the Market
Defensive and consumption-oriented sectors cushioned the fall. The Nifty Auto and Nifty FMCG indices outperformed their peers, keeping the headline indices in positive territory. A sharp decline in crude oil prices also supported the rupee, providing some relief, though analysts noted it was insufficient to sustain broader upward momentum.
Analyst View and What to Watch
'While a sharp decline in crude oil prices supported the rupee and provided some cushion, it was insufficient to sustain upward momentum,' a market expert said. An analyst added that 'in the near term, sentiment may be influenced by a muted Q1 earnings outlook and an uneven monsoon, which should be monitored going forward.' Markets will now track the progress of the monsoon, upcoming quarterly earnings, and global cues for direction in the sessions ahead.