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The Indian stock market exhibited a mixed performance in Wednesday's trading session, characterized by the outperformance of large-cap stocks relative to their mid- and small-cap counterparts. While benchmark indices concluded the session in positive territory, they retreated significantly from their intraday highs due to persistent profit-booking activity, particularly in financial and FMCG (Fast-Moving Consumer Goods) stocks. Nevertheless, the indices received crucial support from gains in IT (Information Technology) and OMC (Oil Marketing Company) stocks, enabling them to close with modest gains. The Nifty 50 index ended the day 0.15% higher at 25,141, successfully maintaining its position above the 25,000 mark for the third consecutive session. Simultaneously, the Sensex registered a gain of 123 points, or 0.15%, to close at 82,515. In contrast, the Nifty Midcap 100 and Nifty Smallcap 100 indices experienced declines of over 0.50%, indicating a broader market weakness. Market participants are adopting a cautious stance, influenced by mixed global cues and the divergent trend observed among index heavyweights, which continues to exert downward pressure on overall market sentiment. The performance of individual sectors and stocks reflected this cautious optimism, with specific areas of strength and weakness emerging throughout the trading day. All three oil marketing companies – IOC, HPCL, and BPCL – witnessed gains of up to 4%, buoyed by the U.S. Energy Information Administration's projection of increased oil inventories. Domestic technology stocks also experienced healthy buying activity, fueled by optimism surrounding a potential trade resolution between the United States and China. In essence, the market displayed resilience in the face of profit-booking and global uncertainties, with specific sectors and stocks benefiting from favorable news and projections.
Among the notable drivers of market activity were the positive developments in the energy and technology sectors. The rally in oil marketing companies (OMCs) was triggered by the U.S. Energy Information Administration’s (EIA) upward revision of its oil inventory projections. The EIA now expects oil inventories to rise by an average of 0.8 million barrels per day (bpd) in 2025, a significant increase of 0.4 million bpd compared to the previous month’s estimate. This projection instilled confidence in investors, leading to increased buying activity in IOC, HPCL, and BPCL. The technology sector also received a boost from developments in U.S.-China trade relations. U.S. and Chinese officials reportedly agreed on a framework to revive their trade truce, which includes addressing China’s export restrictions on rare earth minerals and magnets. This agreement is seen as a positive step towards de-escalating trade tensions between the two economic powerhouses, which could benefit the global technology industry. Domestically, bilateral trade talks between Indian and U.S. officials in New Delhi showed promising progress. Discussions covered key areas such as industrial goods, agriculture, tariff reductions, and non-tariff barriers, according to Reuters, citing Indian government sources. These talks highlight the ongoing efforts to strengthen economic ties between India and the United States, which could lead to increased trade and investment opportunities for both countries. On the economic front, the World Bank released its Global Economic Prospects—June 2025 report, projecting India’s economy to grow at a slightly faster pace of 6.5% in FY27 and 6.7% in FY28. However, the World Bank lowered its global growth forecast to 2.3% for the year, citing escalating trade tensions and policy uncertainty. This downward revision of the global growth forecast underscores the challenges facing the global economy, including geopolitical risks and trade barriers.
The sectoral performance on Wednesday was marked by a clear divergence between gainers and losers. The Nifty Oil & Gas index emerged as the top performer, rising 1.47%, followed by the Nifty IT index, which gained 1.26%. Other sectors such as Nifty Pharma, Nifty Auto, and Nifty Realty also posted healthy gains, contributing to the overall positive sentiment in the market. Conversely, PSU (Public Sector Undertaking) banks continued to face selling pressure, with the Nifty PSU Bank index falling 1.04%. FMCG stocks also experienced profit-booking, dragging the Nifty FMCG index down by 0.7%. The weakness in PSU banks and FMCG stocks reflects concerns about profitability and valuation, respectively. The commentary from market analysts provided further insights into the day's trading activity. Vinod Nair, Head of Research at Geojit Investments Limited, noted that profit booking continued in the broader markets due to elevated domestic valuations. However, he emphasized the resilience of large-cap stocks, which are being favored by institutional investors due to their stable earnings outlooks. Nair also highlighted the focus on the auto and IT sectors, with auto stocks gaining on improved monthly sales and IT stocks benefiting from optimism around a potential US-China trade resolution. He further added that the market lacks clear direction as investors await key macroeconomic data and updates on trade negotiations, particularly the US inflation data, which is expected to show a slight uptick due to recent tariff increases. Rupak De, Senior Technical Analyst at LKP Securities, observed that the Nifty remained volatile throughout the day before closing flat. However, he maintained a positive outlook, citing the index’s ability to hold above the breakout point and the presence of a golden crossover, which supports the bullish sentiment. De advised investors to view any dip as a buying opportunity, with crucial support placed at 24,850. He projected that as long as the index holds above this level, the trend is likely to remain positive, with the potential to move towards 25,350 in the short term. Overall, the Indian stock market displayed a mixed performance on Wednesday, with specific sectors and stocks driving gains while others faced selling pressure. The market is expected to remain volatile in the near term, influenced by global cues, macroeconomic data, and trade negotiations.
Source: Sensex today gains over 100 points, Nifty near 25,150 amid gains in RIL, IT stocks; OMCs outperform