Weak US markets and budget adjustments push Nifty, Sensex lower

The Indian equity market indices ended on a lower note for the fifth consecutive trading session on Thursday, as weak US markets coupled with budgetary adjustments induced selling pressure. Besides,Axis Bank's  lackluster  earnings report (quarterly results) also dented investor sentiments.At close, the Sensex was down 109.08 points or 0.14 percent at 80,039.80, and the Nifty was down 7.40 points or 0.03 percent at 24,406.10. About 1791 shares advanced, 1635 shares declined, and 77 shares unchanged.
Tata Motors, ONGC, SBI Life Insurance, BPCL and Sun Pharma were the top gainers on the Nifty, while losers included Axis Bank, Nestle India, Titan Company, ICICI Bank and Tata Steel.
On the sectoral front, auto, capital goods, power, oil & gas, healthcare, media rose 0.5-3 percent, while bank, IT, metal, realty and telecom shed 0.5-1 percent.The BSE midcap and smallcap indices ended marginally lower.
Rupee Close:
On 25 July'24,the Indian rupee ended mildly stronger on Thursday as a rally in the Chinese yuan and likely intervention from the Reserve Bank of India supported the local currency.
The rupee ended at 83.70 against the U.S. dollar, up slightly from its close at 83.72 in the previous session.The Indian central bank intervened in both the local spot and non-deliverable forward market to help the rupee hold above its record low, traders reportedly said. The rupee has hit all-time lows in the last three sessions but RBI interventions have ensured that the depreciation has been gradual.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly stated,after a volatile session, the Indian market concluded on a flat note, influenced by lower-than- expected earnings growth from major banks. Global indices also reacted pessimistically due to the disappointing results from top US tech companies. However, the government's commitment to improving consumption and bridging the gap for energy transition in the budget buoyed sectoral sentiments. Despite ongoing enthusiasm from retail investors in the broader market, the current high valuations are likely to prompt a shift towards large-cap stocks.

(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)