Indian stock indices ended lower today, recovering partially from intra-day losses primarily due to profit booking. The Sensex and Nifty closed half a percent down, respectively, following recent record highs earlier this week. Most NSE sectoral indices saw declines.
Market analyst Ajit Mishra of Religare Broking noted, “Markets fluctuated sharply, ultimately closing lower by nearly half a percent, undoing gains from Tuesday. Nifty initially dropped significantly but recovered later, buoyed by gains in select heavyweights.” Vinod Nair, Head of Research at Geojit Financial Services, attributed the downturn to profit booking ahead of the upcoming earnings season. He highlighted subdued expectations due to global economic slowdown affecting sales growth and margin consolidation due to high inflation.
Nair also pointed out that market sentiment is cautious ahead of the budget expectations, which have been a significant factor in the recent market rally. He emphasized the outperformance of large caps and the FMCG sector, expected to sustain momentum on stable business prospects. In 2024-25, Sensex and Nifty have delivered returns of approximately 11-12%, bolstered by strong investments from both foreign and domestic institutional buyers. Looking forward, market participants await policy decisions from Nirmala Sitharaman, who retains the finance ministry portfolio and is set to present the full Budget for 2024-25 on July 23.
