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The broader indices showed mixed performance despite reaching new highs during the truncated week ending June 21. The benchmarks recorded marginal gains amid volatility, influenced by mixed global cues, slow monsoon progress, anticipation of the upcoming Union budget, and renewed foreign institutional investor (FII) interest.
The BSE Small-cap index rose by 1.5 percent, while Mid-cap and Large-cap indices remained flat. The BSE Sensex added 217.13 points (0.28 percent) to close at 77,209.90, and the Nifty50 index rose by 35.5 points (0.15 percent) to 23,501.10.
On June 19, the BSE Sensex hit a record high of 77,851.63, while the Nifty50 reached a record high of 23,667.10 on June 21.
Sector-wise, the Nifty Bank index gained over 3 percent, the Nifty Information Technology index rose nearly 2 percent, and the Nifty Metal index increased by almost 1 percent. Conversely, the Nifty Auto index slipped 2.5 percent, the Nifty FMCG index dropped 2 percent, and the Nifty Oil & Gas and Pharma indices both fell by 2 percent each. During the week, FIIs bought equities worth Rs 2,030.83 crore, and Domestic Institutional Investors (DII) also purchased equities worth Rs 6,293.38 crore.
“The Indian stock market continued its upward trend as concerns over election outcomes eased and global sentiment improved. With a coalition government in place, there is optimism that the upcoming budget will balance growth initiatives with populist measures. Additionally, there are high expectations for government actions aimed at stimulating consumption,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Strong institutional inflows, including renewed interest from FIIs post-government formation, have further bolstered market sentiment. However, profit booking emerged due to concerns about the slow monsoon progress. Additionally, heatwaves in northern India remain a key concern,” he added.
The BSE Small-cap index rose by 1.5 percent with Moschip Technologies, Bhansali Engineering Polymers, Hester Biosciences, C.E. Info Systems (MapmyIndia), Heubach Colorants India, Rashtriya Chemicals and Fertilisers, Punjab Chemicals & Crop Protection, National Fertilizers, Shakti Pumps (India), and Chambal Fertilisers and Chemicals gaining 20-40 percent. On the other hand, Lancer Containers Lines, Som Distilleries and Breweries, Chemplast Sanmar, KNR Constructions, ZF Commercial Vehicle Control Systems India, Kamdhenu Ventures, Garware Hi-Tech Films, and PTC Industries lost between 8-11 percent.
Where is Nifty50 headed?
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, noted that the market is likely to remain steady and consolidate at higher levels in the near term. Budget-related sectors are expected to stay active due to news flow and growth-focused policies. Sectors such as Fertilizer, Gaming, and Oil & Gas will react to the outcomes of the GST council meeting scheduled over the weekend. Globally, investors await US Manufacturing & Service PMI data along with US Existing Home Sales.
Amol Athawale, VP-Technical Research at Kotak Securities, shared that as long as the market trades below 23,650/77,500, weak sentiment is likely to continue, potentially retesting levels of 23,300/76,700. Further downside could drag the market to 23,175/76,100. On the other side, 23,650/77,500 is the immediate breakout level for bulls. Post-breakout, the market could move up to 23,800-24,000/78,000-78,500.
For Bank Nifty, 51,000 is the sacrosanct support zone for trend-following traders. Above this level, it could rally to 52,700-53,000. On the flip side, below 51,000, traders may prefer to exit long positions.
