Closing Bell: On the fourth trading day of the week, the market closed with a decline after fluctuating within a limited range. Pressure was also observed in the broader market.
On Thursday, the day of the weekly expiry, the stock market once again traded within a range and closed with weakness. The day started in the green, but as trading progressed, the pressure on the market increased and both the Sensex and Nifty slipped into the red. Notably, the defense, IT, banking, and FMCG sectors faced the most selling pressure.
Pressure on Sensex and Nifty, Midcap-Smallcap also fell
After fluctuating throughout the day, the BSE Sensex closed at 83,190, down 346 points. The NSE Nifty closed at 25,355, down 121 points. Bank Nifty fell by 258 points to close at 56,956. The Nifty Midcap index closed at 59,160, down 180 points.
Smallcap stocks also remained weak, although a slight recovery was seen from the day's lows.
Sectoral Overview: Metals and Realty Positive
Looking at different sectors of the market, the pharma, FMCG, defense, and IT indices were under pressure. On the other hand, buying was seen in metal and realty stocks. The Nifty Realty Index recorded a slight increase, while the Metal Index also closed in the green.
Most Active Stocks
In today's trading, 40 out of 50 shares of Nifty 50 closed in the red. Bharti Airtel was the worst-performing share. HDFC Life stock fell after June's insurance data, while Max Financial Services saw a slight increase.
Investors adopted a cautious approach before the results of IT sector giants TCS and Tata Elxsi, and selling was seen in these shares. Asian Paints fell 2% due to the news of selling a 4.42% stake in Akzo Nobel India.
IndusInd Bank and Maruti Suzuki were the top gainers of Nifty, both recording an increase of approximately 1.5%.
Profit Booking in Defense and Public Sector Companies
There was a profit-booking atmosphere in defense stocks today. The stock of Bharat Dynamics Limited fell by 5%, while Solar Industries also declined by 3%. Public sector company BSE also witnessed weakness and fell by about 2%.
LIC shares fell by 2%. According to reports, the government may sell some stake in LIC through an Offer for Sale (OFS), following which investors booked profits.
Decline in Pharma and Fintech Sectors
Despite receiving approval from the US FDA, Glenmark's share fell by 5%. Paytm continues to be weak and fell by 4% today. There is uncertainty among investors before the June quarter results.
Some Stocks Showed Strength
PFC and REC saw a slight increase. Both stocks closed in the green after positive reports from Morgan Stanley. IREDA saw a rise of about 2% in the stock after news of government approval for capital gains bonds.
Prestige Estates also performed well and recorded an increase of about 3%.
Low Volume and Caution Kept the Market Under Pressure
Low volume in the market and caution on the day of expiry also impacted today's session. Investors avoided large deals and focused on profit booking in small trades. Because of this, the initial rise gradually weakened.
