Benchmark stock indices closed flat after reaching record highs earlier in the session, continuing the positive momentum from recent trading activities, on Monday.
The S&P BSE Sensex gained 23.12 points, ending the day at 81,355.84. The NSE Nifty50 inched up by 1.25 points, closing at 24,836.10.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The recent easing in the US personal consumption expenditure to 2.5 per cent and the subsequent drop in the US 10-year yield have sparked optimism about potential rate cuts by the Federal Reserve in September, contributing to a global rally. However, domestic profit-taking in overbought conditions led to a flat close. This week’s policy meetings of the Fed, BOJ, and BOE are being closely watched, with expectations that the BOE might implement a 25-bps rate cut in response to easing inflation.”
On the Nifty50, Divislab led the gains with a notable 2.93per cent increase, followed by BPCL, which rose by 2.92 per cent. LT and Bajaj Finserv also performed well, advancing by 2.58 per cent and 1.99 per cent, respectively. M&M rounded out the top five gainers with a 1.98 per cent rise.
Bharti Airtel experienced the steepest decline, dropping by 2.08 per cent. Titan and Cipla also saw losses, falling by 1.95 per cent and 1.40 per cent, respectively. ITC and Tata Consumer Products recorded decreases of 1.18per cent and 1.12per cent, respectively.
Sectoral indices on Nifty displayed a mixed performance. The Nifty Media sector showed a strong 1.80per cent increase, followed by Nifty Realty at 1.43per cent and Nifty Oil & Gas at 1.04per cent.
Nifty PSU Bank performed well with a 2.25per cent rise. Other indices in the positive territory included Nifty Auto (0.67per cent), Nifty Bank (0.22per cent), Nifty Financial Services (0.28per cent), Nifty Metal (0.29per cent), Nifty Private Bank (0.28per cent), and Nifty Healthcare Index (0.17per cent).
In contrast, Nifty FMCG saw the largest decline at 0.34per cent, followed by Nifty IT at 0.38per cent. Nifty Financial Services slightly dipped by 0.01per cent, and other declining indices included Nifty Consumer Durables (0.01per cent) and Nifty Midsmall Healthcare (0.07per cent).
Osho Krishan, Senior Analyst – Technical & Derivatives at Angel One Ltd, noted, “While the current price movement might seem minimal for the benchmark indices, the overall trend remains positive with a bullish advance-decline ratio.
Mid and small-cap stocks are outperforming major indices, contributing to a strong market sentiment. For Nifty50, immediate support is around 24,600, with significant demand at the 24,500 zone. On the upside, 25,000 is within reach, and a breakthrough could lead to further gains toward the 161.8per cent retracement of last week’s swing at 25,340.”
The broader Nifty indices also reflected positive momentum. The Nifty Midcap 100 index led with a 1.03per cent increase, indicating strong performance among mid-sized companies. The Nifty Smallcap 100 index also showed notable strength, rising by 1.00per cent, suggesting strong investor interest in smaller companies. The India VIX, measuring market volatility, spiked by 5.69 per cent.
Krishan added, “We maintain a positive outlook and believe any pullback toward the support zone will benefit the Bulls on D-Street. Increased participation from broader markets is expected to provide further momentum. It is crucial to adopt a stock-centric approach for optimal performance while keeping a close watch on global developments that could act as catalysts for the market’s immediate trend.”
