Stock market today: Sensex, Nifty 50 fall for the fifth session in a row; Axis Bank, ICICI Bank among top drags

Stock market today: Extending their losses into the fifth consecutive session, Indian stock market benchmarks, the Sensex and the Nifty 50 closed in the red on Thursday, July 25, tracking weak global cues.

Sensex closed 109 points, or 0.14 per cent, lower at 80,039.80, while the Nifty 50 ended at 24,406.10, down 7 points, or 0.03 per cent.

Shares of ICICI Bank and Axis Bank contributed the most to the losses in the Nifty index. However, shares of Larsen and Toubro, Tata Motors and HDFC Bank ended as the top supports of the index.

Domestic market benchmarks have been down since July 19 amid concerns over rich valuation, unimpressive Q1 earnings of Indian corporates and the lack of fresh triggers.

Nifty 50 is down about 2 per cent from its all-time high of 24,854.80, which it hit on July 19. 

The Budget 2024 also failed to boost market sentiment as it was broadly in line with expectations. The increase in short-term and long-term capital gains taxes also remains a short-term concern for investors.

Weak global cues exerted additional pressure on the Indian market on Thursday. Following a nearly 4 per cent crash in Nasdaq overnight, top European markets in the UK, France and Germany lost 1-2 per cent during the session as weak corporate earnings, uncertainty over rate cuts and news flow around the US Presidential elections kept investors wary.

“Overnight slump in US equities caused a major slump in domestic markets in early trades due to heavy profit-taking in banking, IT, metals and realty stocks," said Prashanth Tapse, Senior VP (Research), Mehta Equities.

In sync with the benchmark Sensex, the BSE Midcap and Smallcap indices fell 0.22 per cent and 0.14 per cent, respectively.

25 stocks ended in the red, and the same number of stocks settled with gains in the Nifty 50 index.

Shares of Tata Motors (up 5.97 per cent), ONGC (up 4.83 per cent) and BPCL (up 3.67 per cent) closed as the top gainers in the Nifty 50 index.

On the other hand, shares of Axis Bank (down 5.08 per cent), Nestle (down 2.50 per cent) and ICICI Bank (down 2.14 per cent) closed as the top losers in the index.

Among the sectoral indices on the NSE, Nifty Metal (down 1.29 per cent) lost the most.

Nifty Bank fell 0.83 per cent, while the Private Bank index declined 0.92 per cent. The Nifty PSU Bank index lost 0.58 per cent.

Consumer Durables (down 0.84 per cent), Realty (down 0.83 per cent) and Financial Services (down 0.50 per cent) also lost significantly.

On the other hand, Nifty Oil and Gas (up 2.22 per cent), Auto (up 1.26 per cent), Pharma (up 0.94 per cent) and Media (up 0.81 per cent) clocked healthy gains.

"After a volatile session, the Indian market concluded on a flat note, influenced by lower-than-expected earnings growth from major banks. However, the government's commitment to improving consumption and bridging the gap for energy transition in the Budget buoyed sectoral sentiments," said Vinod Nair, Head of Research, Geojit Financial Services.

"Despite ongoing enthusiasm from retail investors in the broader market, the current high valuations are likely to prompt a shift towards large-cap stocks," Nair said.

Rupak De, Senior Technical Analyst, LKP Securities, pointed out that on a closing basis, the Nifty 50 managed to hold above the 21 EMA (exponential moving average). The trend for the short term is likely to remain sideways as long as it remains within the bands of 24,200 and 24,600.

"The momentum might remain sideways until there is a breakout on either side. A decisive fall below 24,200 might trigger a serious correction. On the higher end, a sustained move above 24,600 might induce a fresh leg of the rally in the market," said De.

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