The Indian stock market witnessed a shift in momentum on Wednesday, June 19, as the Nifty 50 snapped its five-session winning streak. The benchmark index, which had been on a record-setting spree, faced significant profit booking at higher levels. This downturn was influenced by weak global cues and a lack of fresh triggers on the domestic front.

The Nifty 50 touched a fresh record high of 23,664 during the session but was unable to sustain these gains. The index closed 42 points or 0.18% lower, settling at 23,516. This decline was primarily driven by losses in heavyweight stocks such as Reliance Industries, Larsen and Toubro, and Bharti Airtel.

Market Sentiment and Influencing Factors

Investors chose to book profits across various segments, given that the market had already factored in most positive developments. The focus has now shifted towards upcoming policy announcements and the Budget scheduled for July. Market experts predict that the upside potential of the stock market might remain limited until the Budget is announced.

Despite the broader market's decline, gains in select banking and IT heavyweights helped cap the losses. The Sensex, comprising 30 shares, also hit a fresh record high of 77,851.63 during the session but closed with a modest gain of 36 points or 0.05%, ending at 77,337.59. However, 20 stocks within the Sensex ended in the red, highlighting the mixed performance across different sectors.

Performance of Mid and Smallcap Segments

The mid and smallcap segments also experienced profit booking. The BSE Midcap and Smallcap indices fell by 0.91% and 0.58%, respectively. This broad-based selling pressure led to a decline in the overall market capitalization of BSE-listed firms, which dropped to approximately ₹434 lakh crore from nearly ₹437.2 lakh crore in the previous session. This decrease translated to a loss of about ₹3.2 lakh crore for investors in a single trading session.

Top Nifty 50 Gainers and Losers

Among the Nifty 50 constituents, only 11 stocks managed to close in the green. The top gainers included:

• Axis Bank: up 3.11%
• HDFC Bank: up 3.06%
• ICICI Bank: up 1.92%
• IndusInd Bank: up 1.86%
• Kotak Mahindra Bank: up 1.49%
• SBI: up 1.11%

Conversely, the top losers in the Nifty 50 pack were:

• Titan: down 3.60%
• Maruti Suzuki: down 2.60%
• Bharti Airtel: down 2.41%
• Bajaj Auto: down 2.40%
• BPCL: down 2.32%
• Larsen and Toubro: down 2.23%

Sectoral Indices Performance

The Nifty Bank index continued its upward trajectory, hitting a fresh record high of 51,957 during the session and ending with a robust gain of 1.90% at 51,398.05. The index had 10 components in the green, with only AU Small Finance Bank (down 1.25%) and Bank of Baroda (down 0.87%) in the red. The Nifty Private Bank index jumped by 2.01%, while the PSU Bank index posted a nominal gain of 0.09%.

Among the laggards, sectoral indices that saw significant declines included:

• Nifty Realty: down 2.83%
• Consumer Durables: down 1.96%
• Oil & Gas: down 1.74%
• Auto: down 1.30%
• Media: down 1.29%
• Metal: down 1.18%

Conclusion

The Indian stock market faced a setback as the Nifty 50 and Sensex paused their upward momentum due to profit booking and weak global signals. With a lack of new domestic triggers, the market's direction appears to hinge on upcoming policy announcements and the July Budget. Investors and market participants will be closely watching these developments to gauge future trends and opportunities in the stock market.

As the market adjusts to these factors, staying informed and understanding the broader economic and policy landscape will be crucial for making informed investment decisions. The interplay between domestic and global cues will continue to shape market movements in the coming weeks.

Also Read : Dollar Index Stabilizes as US Holiday Damps Trading Volume

Also Read : Jal Jeevan Mission: Transforming Rural India with Tap Water Connections

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.