Abhinav Tiwari, Research Analyst at Bonanza
On Friday, the Indian stock market ended largely flat after a volatile session, with the Sensex closing marginally lower by around 95 points and the Nifty hovering just below the 25,500 level. The flat closing was mainly due to mixed investor sentiment amid ongoing FII selling, coupled with cautious DII support that limited the downside.
Weak global cues, especially from softened technology and AI stocks in US markets, also contributed to subdued trading activity. Additionally, profit booking pressure persisted, particularly in sectors like financials and real estate, while metals outperformed and provided some stability to the benchmarks.
Among sectoral trends, metals outperformed and were one of the few bright spots on the day, benefiting from stable global commodity prices and easing supply concerns. However, financials, real estate, and media stocks faced broad-based selling pressure, dragging the indices lower. Specific corporate results also influenced stock prices with Lumax Industries reporting a 25.8% YoY net profit increase but the share price falling due to negative operating leverage. SEBI’s announcement about plans to review short-selling and stock lending/borrowing mechanism added to market caution. The market also reacted nervously to easing crude oil prices near $63.5 per barrel, which somewhat tempered inflation worries but kept the energy sector subdued.
Going forward, we are expected to remain cautious, focusing on key upcoming US economic data, especially ISM PMI reports, which will influence global risk sentiment and fund flows into India. Domestic factors such as RBI’s policy stance and Q2 earnings from major corporates will also guide market direction.