Indian markets decline marginally on Tuesday amid volatility
May 28, 2024
Mumbai (Maharashtra) [India], May 28 : Indian stock markets closed marginally below on Tuesday after a high volatility during the trading. The equity markets experienced a pause after record gains recently.
The NSE Nifty 50 closed down by 0.19 per cent at 22,888.15, while the BSE Sensex closed 0.29 per cent and 220 points down at 75,170.45.
In the broader markets, indices declined, with the BSE MidCap falling by 0.77 per cent and the BSE SmallCap slipping by 1.09 per cent. The Volatility index of markets surged to a two year high at 24.20 as the elections entered the final phase.
"The Indian market exhibited mild consolidation post the recent sharp surge. The uncertainty-led volatility is likely to continue as the market approaches the election outcome. Conversely, the underlying earnings growth for the March quarter results so far was largely above expectations, which would likely support the valuation, which is currently moderately above the long-term average. Mid- & small-caps underperformed today, while defensive sectors like Pharma and FMCG were optimistic" said Vinod Nair, Head of Research, Geojit Financial Services.
In the sectoral indices, the Nifty Realty dropped by 2.16 per cent, the Nifty PSU Bank by 1.28 per cent, and the Nifty Metal by 0.52 per cent.
The top gainers in Nifty 50 included Divi's Lab, SBI Life, HDFC Life, Grasim Industries, and Hero MotoCorp, while major losers were Adani Ports, Power Grid Corp, Coal India, BPCL, and ONGC.
The Realty, PSU Bank, and Oil & Gas sectors were the primary drags, while Pharma and Healthcare sectors saw the most gains. Bank, Auto, Metal, Consumer Durables, and IT sectors were in the red, whereas Financial Services, Media, and FMCG sectors were in the green.
"Traders awaited inflation data and central bank speeches for clues on the timing of interest-rate adjustments. Inflation expectations in the euro zone eased in April, while the Federal Reserve's preferred inflation measure was expected to show modest relief. ECB policymakers were set to meet on rates on June 6," said Varun Agarwal, MD, Profit Idea.
In Europe, the Stoxx 600 remained largely unchanged, set for a 3.5 per cent gain in May, while US shares climbed by 0.3 per cent. The 10-year Treasury yield dropped by two basis points, and the dollar remained steady. The Brent crude in the international market remained flat on Tuesday despite escalating tensions in the Middle East.
