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The Indian stock market experienced a downturn on May 29, with both the Sensex and Nifty giving up their earlier gains to close in the red. This negative sentiment was largely driven by selling pressure in banking and Fast-Moving Consumer Goods (FMCG) stocks, which weighed heavily on investor confidence. Even the IT sector, which initially showed promise with gains exceeding 1 percent in morning trade, eventually lost momentum and traded with only a modest upside. This overall market performance is noteworthy considering the presence of positive global cues, particularly the decision by a US trade court to block President Donald Trump’s sweeping tariff agenda, a development that would typically be expected to boost market sentiment worldwide. Despite this favorable external factor, the Indian markets have been exhibiting a declining trend over the past two trading sessions, indicating underlying concerns specific to the Indian economic landscape or investor perceptions thereof. The indices at 11:35 am reflected this trend, with the Sensex down by 32.18 points, or 0.04 percent, to reach 81,280.14, and the Nifty down by 19.45 points, or 0.08 percent, at 24,733.00. Market breadth, as indicated by the advance-decline ratio, showed a slightly negative skew, with 1620 shares advancing, 1679 shares declining, and 119 shares remaining unchanged, highlighting the mixed sentiments prevailing in the market. The analysis provided by Vinod Nair of Geojit Investments Limited sheds light on potential factors contributing to this market behavior. He suggests that a lingering concern over India-US trade relations, particularly following the end of the 90-day pause period, continues to pose an external risk to the Indian market. Domestically, there are mitigating factors such as an improved monsoon forecast, a benign inflation outlook, and expectations of a stronger Q4 GDP, which may provide some cushion against downside risks. However, Nair emphasizes the critical need for earnings visibility to improve in tandem with these macroeconomic indicators, as this is vital for ensuring stability in the direction of the market. Sectoral trends on the National Stock Exchange (NSE) on May 29 were diverse, reflecting the mixed sentiments across different industries. Market volatility, as measured by the India VIX, continued to ease, falling by 6.60 percent to 16.83, which suggests a decrease in investor uncertainty and a potential calming of market nerves. Gains were primarily seen in Nifty Metal, which rose by 0.62 percent, followed by IT, up by 0.56 percent, and Pharma, which added 0.34 percent. Other sectors such as Realty, Media, Auto, and Energy indices also posted modest gains, indicating some pockets of positive performance within the broader market. Conversely, the Nifty PSU Bank declined by 0.61 percent, FMCG fell by 0.53 percent, and Bank and Private Bank indices dropped by 0.41 percent and 0.26 percent, respectively, highlighting the specific sectors that contributed to the overall market decline. Consumer Durables and Oil & Gas saw marginal losses, while the Infra sector remained nearly flat, indicating a lack of significant movement in these areas. The Nifty Midcap 100 index slipped by 0.01 percent, ending a four-day winning streak, while the Smallcap 100 index extended its run to five days, rising by 0.45 percent, suggesting that smaller companies may be outperforming their larger counterparts during this period. Specific company performances also provide insights into the market dynamics. Shares of Cummins India gained as much as 5 percent, reaching Rs 3,115 in morning trade, after the company reported a 7.2 percent year-on-year decline in net profit at Rs 521.37 crore for the March quarter, despite a 6.1 percent rise in revenue from operations to Rs 2,457 crore, driven by a steady uptick in export demand. This divergence between profit and revenue growth suggests potential margin pressures or increased operational costs. In the same period last year, the power solutions firm had posted a profit of Rs 561.52 crore on revenue of Rs 2,316.15 crore, further highlighting the change in the company's financial performance. Indian Railway Catering and Tourism Corporation (IRCTC) stock gained 1 percent after it reported a strong set of numbers for the March quarter, with net profit rising 26 percent year-on-year to Rs 358 crore, helped in part by a one-time gain of Rs 45.68 crore. In the year-ago period, the company had posted a profit of Rs 284 crore, indicating a significant improvement in its financial performance. Shares of private lender IndusInd Bank Ltd edged over a percent higher even as the markets regulator Securities and Exchange Board of India (SEBI) barred former IndusInd Bank MD&CEO, Sumant Kathpalia, former Deputy CEO Arun Khurana, and three other former senior officials of the bank for alleged insider trading. This seemingly contradictory market reaction suggests that investors may have already priced in the potential impact of the SEBI action or that the positive news surrounding the bank's overall performance outweighed the negative news regarding the insider trading allegations.
Rajessh Bhosale of Angel One provided technical analysis, noting that the Nifty continues to oscillate between the matching lows around 24,450 and the matching highs near 25,100. He emphasized that this range remains crucial, and any breakout beyond it could reignite momentum. However, he also cautioned that testing these levels on the expiry day itself appears unlikely and breaking it would be a tough ask, suggesting a period of consolidation within the established range. Bhosale further identified immediate support around 24,600, which aligns with the 20-day Exponential Moving Average (DEMA), and the psychological 25,000 mark as immediate resistance, indicating that these two levels are expected to be pivotal during the expiry session. This technical analysis provides traders and investors with specific levels to watch for potential trading opportunities or risk management strategies. Examining the top gainers and losers on the Nifty provides further insight into the market's dynamics. Eternal, IndusInd Bank, Sun Pharma, Trent, and Tata Steel were the top gainers, indicating positive sentiment towards these companies and their respective sectors. Conversely, Tata Consumer Products, Jio Financial Services, Bharat Electronics, Bajaj Finserv, and Bajaj Finance were the major laggards, suggesting that these companies faced headwinds that contributed to their underperformance. The disclaimer at the end of the article is important to note, as it emphasizes that the views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before making investment decisions, highlighting the importance of conducting thorough due diligence and seeking professional advice before making any investment decisions based on the information provided. This disclaimer is a standard practice in financial journalism to protect both the platform and its users from potential liability and to ensure that investors are aware of the risks involved in investing. In summary, the Indian stock market experienced a mixed day on May 29, with both the Sensex and Nifty closing in the red due to selling pressure in banking and FMCG stocks. Despite positive global cues, lingering concerns over India-US trade relations and the need for improved earnings visibility weighed on market sentiment. Sectoral trends were diverse, with some sectors posting gains while others declined. Specific company performances also varied, reflecting the complex dynamics of the market. Technical analysis suggests a period of consolidation within a defined range, while the disclaimer emphasizes the importance of seeking professional advice before making investment decisions.
The article presents a snapshot of the Indian stock market's performance on a specific day, highlighting the various factors influencing investor sentiment and market movements. It provides a balanced perspective by considering both positive and negative factors, as well as expert opinions and technical analysis. The inclusion of specific company performances and sectoral trends adds depth and context to the overall market picture. The article also underscores the importance of risk management and seeking professional advice before making investment decisions, which is a crucial message for readers who are considering investing in the stock market. One of the key takeaways from the article is the importance of understanding the interplay between global and domestic factors in shaping market sentiment. While positive global cues can provide a boost to the market, domestic concerns and challenges can still weigh heavily on investor confidence. The article also highlights the need for improved earnings visibility to support market stability, as strong macroeconomic indicators alone are not sufficient to sustain positive momentum. Another important point is the diversity of sectoral trends, which indicates that different industries are facing different challenges and opportunities. Investors need to carefully analyze the specific dynamics of each sector before making investment decisions. The article also underscores the importance of technical analysis in identifying potential trading opportunities and risk management strategies. By monitoring key support and resistance levels, traders can make informed decisions about when to buy or sell stocks. Finally, the article reinforces the importance of seeking professional advice and conducting thorough due diligence before making any investment decisions. The stock market is inherently risky, and investors need to be aware of the potential for losses. By consulting with certified experts and conducting their own research, investors can make more informed decisions and minimize their risk exposure. The information presented in the article is intended for informational purposes only and should not be construed as investment advice. Readers should consult with a qualified financial advisor before making any investment decisions. It is important to remember that past performance is not necessarily indicative of future results, and the value of investments can go down as well as up. Investors should carefully consider their investment objectives and risk tolerance before investing in the stock market. The article provides a valuable overview of the Indian stock market's performance on a specific day, highlighting the various factors influencing investor sentiment and market movements. It also underscores the importance of risk management and seeking professional advice before making investment decisions.
Source: Sensex falls 600 pts from day's high, Nifty below 24,750 as bank, FMCG stocks drag