Will the Stock Market Hold Steady After Initial Gains as US-China Talks Conclude?
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Synopsis
As the stock market navigates through a phase of slight decline after initial gains, all eyes are on the crucial US-China discussions. Investors and analysts alike are keenly awaiting the outcomes, which could influence market trends significantly in the near future. Stay tuned to understand the market's potential trajectory amidst these global negotiations.
Key Takeaways
- Domestic indices have extended their winning streak.
- Early gains were trimmed, leading to a slight decline.
- Sector performance varied, with technology and media stocks rallying.
- Profit booking is noted among banking stocks.
- Investor sentiment is tied to US-China trade talks.
Mumbai, June 10 (NationPress) The domestic benchmark indices have successfully continued their winning streak for the fifth consecutive session this Tuesday, initially opening with moderate gains. However, these early gains were slightly reduced, leading to a minor decline in trading.
At 9:17 AM, the Sensex recorded an increase of 28.49 points or 0.03 percent, reaching 82,473.70, while the Nifty rose by 21.15 points or 0.08 percent, landing at 25,124.35.
In terms of sectors, stocks in technology, metals, and media experienced significant rallies. Conversely, banking stocks faced slight pressure due to profit booking.
The smallcap and midcap indices saw gains of up to half a percent, indicating broad-based buying in the markets.
As per Akshay Chinchalkar, Head of Research at Axis Securities, the market's performance yesterday was an extension of Friday's positive momentum for the Nifty.
“From a technical standpoint, whether we're witnessing a pennant or a rectangle breakout, the outlook remains bullish with a target of 25,800. The 25,200 level is crucial on the upside; as long as bearish forces cannot push the index below 24,800, the bulls maintain a strong position. The conclusion of US-China discussions today will likely serve as the next trend catalyst,” he stated.
Vikram Kasat, Head-Advisory at PL Capital, remarked that while steps to ease US-China tensions are positive, a comprehensive agreement may require more time.
“Investors are keenly watching for tangible progress toward sustainable agreements with other trading partners,” Kasat added.
Given the recent market uptrend and increased valuations, analysts suggest some profit booking to safeguard against unforeseen events.
On a global front, the S&P 500 in the US closed slightly higher on Monday, buoyed by Amazon and Alphabet shares, while traders monitored US-China negotiations. Asian equities also rose, supported by positive expectations from these trade talks.
Foreign institutional investors (FIIs) maintained their buying momentum for the second consecutive day, acquiring equities worth Rs 1,992 crore on Monday. Domestic institutional investors (DIIs) continued their purchasing streak for the 15th day, buying equities valued at Rs 3,503 crore on the same day.
Point of View
Continuous monitoring of external factors, such as international negotiations, is crucial. As we observe the market's current performance, it is essential to remain vigilant and adaptable to shifts driven by global events, ensuring our investments align with the broader economic climate.
NationPress
11/06/2025
Frequently Asked Questions
What are the current trends in the stock market?
The stock market is currently experiencing slight declines after initial gains, with significant focus on the outcomes of US-China trade talks.
How are foreign institutional investors influencing the market?
Foreign institutional investors have been actively buying equities, contributing to market stability despite recent fluctuations.
What sectors are performing well?
Technology, metals, and media stocks have shown strong performance, while banking stocks are facing some profit booking pressure.
