Indian Markets Hold Weekly Gains Despite Expiry Volatility, Closed for Muharram

Indian markets closed on Friday for Muharram, end week higher despite expiry-led volatility

Mumbai, June 26

The benchmark Nifty 50 advanced 0.80 per cent during the week to close at 24,056.00, while the Sensex gained 0.46 per cent over the past five trading sessions to settle at 77,100.47, reflecting resilience amid global uncertainties and expiry-led volatility.

In the previous trading session on Thursday, the Nifty 50 ended 34.35 points or 0.14 per cent higher, while the Sensex rose 109.25 points or 0.14 per cent.

As of June 25, the Nifty 50 had a market capitalization of Rs 474.80 lakh crore, according to the National Stock Exchange (NSE).

Sectorally, banking stocks led the gains during the week, rising 0.25 per cent, followed by finance, automobiles and ancillaries, and healthcare. Software and IT services as well as metals and mining remained the biggest laggards, declining over 3 per cent and 4 per cent, respectively.

According to Banking and market expert Ajay Bagga, domestic bourses witnessed a classic case of intraday whiplash during the final session of the series, beginning on a strong note before succumbing to expiry-related volatility.

He noted, "Taking its cue from cratering global oil prices--historically the ultimate macro catalyst for Dalal Street--the Nifty aggressively scaled an intraday high of 24,261, while the Sensex flirted with an 800-point rally."

However, "the afternoon session (on Thursday) devolved into a fierce battlefield; heightened volatility surrounding the monthly derivative expiry triggered rampant profit-booking, particularly across the IT and metal counters, leaving both the Sensex (up 109 points at 77,100) and Nifty 50 (up 34 points at 24,056) to settle with razor-thin gains of 0.14 per cent."

"While high-flying auto stocks like Maruti and M&M feasted on softer raw material costs, the broader market painted a more sobering picture as midcaps and smallcaps finished deep in the red. Bulls will now have an extended three-day weekend to nurse their expiry wounds and dissect global cues, with Dalal Street remaining firmly shuttered today, Friday, in observance of Muharram," said Bagga.

In global markets, precious metals remained under pressure, with gold and silver heading for a fourth consecutive weekly decline, weighed down by a stronger US dollar and expectations of prolonged higher US interest rates.

Silver slipped 1.96 per cent to USD 56.95 per ounce during early Comex trade. Gold traded at USD 4,008.76, down 18.74 points or 0.46 per cent, while Brent crude was at USD 73.73 per barrel, down 2.05 per cent or 1.51 points at the time of filing.

The Muharram holiday applies across all major market segments, including equity, equity derivatives, and the Securities Lending and Borrowing (SLB) segment. The Multi Commodity Exchange (MCX) will remain closed during the morning session and resume trading in the evening, while the National Commodity & Derivatives Exchange (NCDEX) will remain closed for the entire day.

— ANI