Nifty, Sensex dip marginally after record highs as bank, auto stocks weigh on market sentiment
Nifty, Sensex dip marginally after record highs as bank, auto stocks weigh on market sentiment
Headline indices Nifty and Sensex ended the trading session in the red, albeit marginally, on July 2 as profit booking in the banking and auto sectors dampened the sentiment. This comes after the benchmarks scaled fresh record highs shortly after opening.
At close, the Sensex was down 0.02 percent at 79,461 and the Nifty was down 0.06 percent at 24,127. About 1,729 shares advanced, 1,692 shares declined, and 75 shares unchanged.
Experts suggest that the bouts of profit booking in a bull market are normal and the overall sentiment among investors remains positive for multiple reasons such as the return of FIIs, upcoming budget and policy continuity.
Of the 13 sectoral indices, auto, bank, FCMG and healthcare were trading lower with the bank being the biggest loser. Major stocks such as ICICI Bank, Kotak Mahindra and SBI fell the most. The IT, Realty and Energy sectors were the best performers, data showed.
"The worst phase for the IT is over as participants are looking for stocks which have not given high returns in the last couple of quarters and the risk-reward ratio is favourable," said Ruchit Jain, an analyst at 5paisa.
The broader market, also known as midcaps and smallcaps, underperformed the benchmark indices. While the smallcap index ended just marginally higher, the midcap index shed almost one percent.
"Nothing has changed as the strong uptrend is intact and buying on dips will be an ideal strategy. The downside seems to be protected at a psychological support of 24,000 while 24,230 will be an immediate resistance," Aditya Gaggar Director of Progressive Shares said.
The fear gauge, India VIX, eased by about 1.4 percent to be at around 13.6 level on July 2.
"After opening at the new all-time high of 24236 levels, the market was not able to show a follow-through upmove since opening. Narrow range movement with weak bias continued in the mid to later part and Nifty closed near the lows," Nagaraj Shetti, senior technical research analyst at HDFC Securities, said. He also added that further consolidation or minor dips from here could be a buying opportunity.
Top Nifty gainers were L&T, Wipro, Infosys, HDFC Bank and TCS, while losers were Shriram Finance, Bharti Airtel, Kotak Mahindra Bank, HDFC Life and IndusInd Bank.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.