Stock market today: Indian stock market benchmarks—the Sensex and the Nifty 50—closed flat on Monday, July 8, as gains in shares of heavyweights such as ITC, Reliance Industries and Infosys were offset by losses in those of HDFC Bank, Titan, TCS and Mahindra and Mahindra amid mixed global cues.
The tug of war between bulls and bears continued as investors bought stocks with attractive valuations and booked profits in those trading at a premium.
The Sensex opened at 79,915 against its previous close of 79,996.60 and traded in the red for most part of the session. The index finally closed 36 points, or 0.05 per cent, lower at 79,960.38. On the other hand, the Nifty 50 opened at 24,329.45 against its previous close of 24,323.85 and closed 3 points lower at 24,320.55.
FMCG stocks clocked healthy gains today as ITC, Hindustan Unilever and Nestle ended as the top three gainers in the Sensex index. However, in terms of index contribution, ITC, Reliance and Infosys were the top three movers of the Sensex index. On the flip side, shares of HDFC Bank, Titan, TCS and Mahindra and Mahindra were the top drags on the index.
Reliance Industries share price hit its fresh record high of ₹3,217.90 on the BSE before closing 0.69 per cent higher at ₹3,202.10 apiece, extending gains into the third consecutive session.
In an exchange filing on Friday, July 5, the company said CARE Ratings had reaffirmed the credit rating of ‘CARE AAA; Stable’ and ‘CARE A1+’ for its non-convertible debentures (NCDs) and commercial papers.
While the benchmarks ended flat, the midcap and smallcap indices on the BSE closed with losses. The BSE Midcap index fell 0.14 per cent; the Smallcap index ended 0.22 per cent lower.
Investors are betting on stocks selectively as concerns over market valuation have risen. The upcoming Budget and India Inc.'s Q1FY25 earnings are the key factors that will decide the market's mood.
Moreover, speculations over the US Fed's rate cuts have also been keeping investors busy. After Friday's jobs report, which showed job growth slowed marginally in June in the US, expectations have risen that the US Federal Reserve will cut rates in its September meeting.
Shares of ONGC (up 4.15 per cent), ITC (up 2.34 per cent) and HDFC Life (up 2.25 per cent) closed as the top gainers in the index.
Shares of Titan (down 3.33 per cent), Divi's Labs (down 3.23 per cent) and BPCL (down 2.49 per cent) closed as the top losers in the Nifty 50 index.
Most sectoral indices on the NSE ended with losses. Nifty PSU Bank (down 1.60 per cent), Consumer Durables (down 1.28 per cent), and Metal (down 0.93 per cent) lost significantly.
Nifty Bank ended with a loss of 0.45 per cent, while the Private Bank index dropped 0.25 per cent.
Nifty FMCG index jumped 1.63 per cent, defying weak market sentiment. It was followed by Nifty Oil & Gas (up 0.88 per cent).
“Due to lack of any fresh trigger, markets witnessed a rangebound session throughout the day and ended marginally weak owing to select profit-taking in banking, telecom and realty shares. Weak Asian cues also weighed on sentiment, while stretched valuations could see investors maintain caution for some time,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Vinod Nair, the head of research at Geojit Financial Service, observed that the market is turning to a consolidation phase due to the absence of major triggers to support the current premium valuation in the near term, prompting investors to book some profits.
"The earnings season is around the corner, and the initial expectation is subdued. With stable input prices and ongoing price cuts, the period of margin expansion appears to be concluding, likely affecting earnings and valuations," said Nair.
Aditya Gaggar, the director of Progressive Shares, pointed out that the Nifty 50 formed a DOJI candlestick pattern, which indicates indecisiveness between the bulls and bears.
Gaggar believes the choppy trade may continue, with the downside protected at 24,220 and the immediate hurdle placed at 24,400.
According to Shrikant Chouhan, the head of equity research at Kotak Securities, for the bulls now, 24,360/80,100 would be the key resistance level. After 24,360/80,100, the index could move up to 24,450-24,500/80,400-80,600. Conversely, the dismissal of 24,240/79,730 may accelerate selling pressure. Below this, the market could retest the level of 24,160-24,120/79,500-79,200.
Read all market-related news here
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
