Stock Market Update: Benchmark Indices Witness Mild Profit Booking

Stock Market Update: Benchmark Indices Witness Mild Profit Booking

VoM News Desk | September 18, 2023 | 11:14 AM IST | Breaking News | Follow on Google News

Stock Market Update: Benchmark Indices Witness Mild Profit Booking. Image/Mint

The Indian stock market experienced a day of mild profit booking as investors decided to take some profits off the table following the recent record-breaking highs achieved by the benchmark indices.

Sensex and Nifty in the Red

On Monday, the Sensex closed with a loss of 242 points, equivalent to a 0.36 percent decline, settling at 67,596.84. Meanwhile, the Nifty ended the day 59 points lower, representing a 0.29 percent decrease, and closed at 20,133.30.

Top Gainers and Losers in Nifty 50

Among the top gainers in the Nifty 50 were Power Grid Corporation of India Ltd (up 3.12%), Titan Company Ltd (up 2.66%), HDFC Life Insurance Company Ltd (up 2.43%), Mahindra & Mahindra Ltd (up 2.26%), and Bharat Petroleum Corporation Ltd (up 2.26%). On the flip side, the top laggards included Hindalco Industries Ltd (down 2.19%), HDFC Bank Ltd (down 1.93%), Adani Ports and Special Economic Zone Ltd (down 1.80%), and Dr Reddy’s Laboratories Ltd (down 1.68%).

Record Highs Achieved on Friday

Indian stock indices had recently touched fresh all-time highs, thanks in part to robust cues from the US markets and consistent foreign portfolio investor inflows. On Thursday, the markets had also marked new highs. During this period, the Sensex and Nifty reached new peaks, propelled by strong performances from heavyweight stocks in the banking, auto, and IT sectors, including HDFC Bank, TCS, and Mahindra & Mahindra.

Cautious Outlook Ahead of Central Bank Meetings

Despite the optimism that had been prevailing in the market, investors this week adopted a cautious approach in anticipation of key monetary policy decisions. The US Federal Reserve meeting, scheduled for Tuesday and Wednesday, has been a focal point. During its July meeting, the US central bank raised its benchmark interest rate by 25 basis points, reaching the highest level in 22 years at 5.25–5.5%, aiming to combat rising inflation.

Factors Impacting Market Sentiment

Vinod Nair, Head of Research at Geojit Financial Services, noted that market momentum waned as investors braced for multiple policy rate decisions. Concerns regarding a potential resurgence in demand in China and crude supply cuts contributed to a dip in investor confidence. Elevated US bond yields, indicative of renewed fears of a Fed rate hike, added to the cautious sentiment. As a result, markets awaited clarifications from major central banks.

Top Gainers and Losers during the September 18 Trading Session

In the Sensex category, top gainers included Power Grid Corporation of India Ltd (up 3.01%), Titan Company Ltd (up 2.73%), Mahindra & Mahindra Ltd (up 2.65%), NTPC Ltd (up 2.07%), and Bajaj Finserv Ltd (up 1.35%). Leading the list of losers were HDFC Bank Ltd (down 1.98%), Bharti Airtel Ltd (down 1.71%), Infosys Ltd (down 1.40%), Ultratech Cement Ltd (down 1.36%), and Tata Steel Ltd (down 1.21%).

Sectoral Performance

In terms of sectoral performance, PSU Banks exhibited robust positive momentum, reaching fresh all-time highs with a 3% gain. However, two significant negative factors influencing sentiment were the rise in WTI Crude oil futures, surpassing $91 per barrel, and the US dollar index maintaining levels above 105, nearing a six-month high.

As the markets navigate these challenging dynamics, investors and analysts will be closely monitoring central bank decisions and global economic factors to gauge future market trends.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.