In the sectoral indices, the Nifty PSU Bank index performed the best, recording a gain of 0.94 percent. Conversely, the most pressure was seen in the Nifty Auto index.
The Indian stock market started trading on Monday, June 30th, with a slight decline. Domestic investors appeared cautious amid mixed signals from Asian markets. The Sensex failed to sustain above 84,000 and slipped into the red in the initial session. Meanwhile, the Nifty 50 remained flat amidst fluctuations. Public sector banking shares saw the most gains in early trading, while the auto sector came under pressure.
Sensex and Nifty Opening
The BSE Sensex opened at 84,027.33 with a slight dip of 30 points, and within the first few minutes, it fell by 119.59 points, or 0.14 percent, to reach 83,939. The NSE Nifty 50, on the other hand, opened at 25,552 with a weakness of about 17 points. The selling pressure was evident in heavyweight stocks like HDFC Bank, Reliance Industries, and ICICI Bank, affecting the market's movement.
Sector-wise Performance
The Nifty PSU Bank index performed the best today. This index recorded a rise of approximately 0.94 percent. There was buying observed in shares of State Bank of India, Bank of Baroda, and Union Bank. On the other hand, the Nifty Auto index faced the most pressure, declining by almost 0.80 percent. Stocks like Mahindra & Mahindra, Hero MotoCorp, and Tata Motors showed weakness.
IT, metal, and pharma sector stocks showed a mixed trend, while FMCG and consumer durables provided some relief.
GIFT Nifty's Signal
The GIFT Nifty futures had already predicted a flat market start. At 8 a.m., it was trading at 25,774, down by 10 points. This also directly affected the market's opening, and investors adopted a cautious approach.
Support from Asian Markets
Asian stock markets showed good strength on Monday. Japan's Nikkei index was trading with a jump of 1.6 percent. The TOPIX index also saw a rise of 1 percent. South Korea's KOSPI index increased by 0.64 percent, and Australia's ASX 200 index also rose by 0.19 percent.
China's Purchasing Managers' Index (PMI) data for manufacturing provided relief to investors. Along with this, industrial production data from Japan and Korea also strengthened market sentiment.
Positive Signals from America
The US stock market also saw b gains on Friday. The S&P 500 closed at 6,173.07, setting a new record. The Nasdaq Composite closed at an all-time high, up 0.5 percent. The Dow Jones Industrial Average also saw a rise of nearly 1 percent. The data from the US and investor confidence in tech companies have created a positive environment in global markets.
The sharp rise in the US markets in June has left behind the April lows. Despite uncertainty over trade policy and global trade talks, investors have favored buying.
Focus on Economic Data on the Domestic Front
In India this week, investors are focused on the industrial and manufacturing production data for the month of May. These figures will present a picture of economic growth. Also, the activities of foreign institutional investors and the movement of the rupee against the dollar will play a significant role in determining the market's direction.
In addition, investors have high expectations regarding the upcoming full budget of the central government. Investors are eager to know which sector the government will provide what kind of relief to.
Today's Activity in the IPO Market
Today, the allotment of two important IPOs, HDB Financial Services and Sambhav Steel Tubes, has been finalized. Investors who had applied in these two issues can now check their allotment on the websites of BSE, NSE, or the relevant registrar.
The HDB Financial Services issue has been in discussion for quite some time and has generated considerable interest among investors. The IPO of Sambhav Steel Tubes, in particular, was a center of attraction for investors in the midcap segment.
Activities of FIIs and DIIs
On Friday, Foreign Institutional Investors (FIIs) had made b purchases in the Indian market. Domestic Institutional Investors (DIIs) were also seen active in the market. Today's initial figures show that investors are cautious about the market's movement and are trading with sectoral rotation.
View on the Current Market Movement
Despite the initial decline in the stock market, there is a buying atmosphere in some sectors. In particular, the trend of investors is visible in PSU banks. However, the index is under pressure due to the weakness of heavyweight stocks in the Nifty and Sensex.
The market's movement will largely depend on the activity in the IPO market, global signals, and news related to the upcoming budget. On Monday, investors have so far preferred caution, and the market appears to be trading within a limited range.
