Sensex, Nifty end lower amid West Asia tensions; Auto and IT stocks weigh on indices
Mumbai, June 29
Indian equity benchmarks ended the session in negative territory on Monday as weakness in auto, information technology, and public sector banking stocks weighed on investor sentiment. Renewed geopolitical tensions in West Asia also kept traders cautious, leading to broad-based selling across sectors.
The Sensex declined 372.10 points, or 0.48 per cent, to settle at 76,728.37, while the Nifty fell 109.75 points, or 0.46 per cent, to close at 23,946.25.
Commenting on Nifty technical outlook, experts said that the 24,000 psychological level now acts as the immediate resistance, followed by the 24,100-24,200 zone, which remains a stronger supply area.
"On the downside, the 23,900 level now acts as an immediate support, followed by the 23,800 zone. Holding above these levels will be crucial to prevent further weakness," an analyst stated.
Investor sentiment remained subdued amid concerns over escalating tensions in West Asia, prompting market participants to adopt a risk-averse approach. Selling pressure was particularly visible in automobile, IT, and PSU banking stocks, which dragged the benchmark indices lower.
Among the major laggards in the Nifty index were Mahindra & Mahindra and Tata Motors Passenger Vehicles, which witnessed significant declines during the session.
The broader markets also ended in the red, reflecting cautious sentiment across segments. The Nifty MidCap index slipped 0.37 per cent, while the Nifty SmallCap index declined 0.62 per cent.
On the sectoral front, pharmaceutical stocks emerged as the top performers, with the Nifty Pharma index posting the strongest gains. The Nifty Metal and Nifty Healthcare indices also outperformed the broader market, supported by selective buying interest.
In contrast, the Nifty Auto, Nifty Chemical, and Nifty Oil and Gas indices remained under pressure and ended as the worst-performing sectors of the day.
Experts said that market participants are expected to closely monitor developments in West Asia and upcoming domestic and global cues, which could influence investor sentiment and market direction in the coming sessions.
"Profit booking persisted near key psychological levels as investors remained cautious about the sustainability of the interim US-Iran peace agreement," according to market experts.
— IANS
Reader Comments
Honestly, I'm tired of these knee-jerk reactions every time there's geopolitical trouble. Oil prices might spike, but auto stocks getting hammered is an overreaction. Mahindra and Tata Motors are solid companies. Hope this is just short-term noise.
I think the profit booking at 24,000 was overdue. Markets have rallied so much in recent months, a bit of correction is healthy. Pharma and metals bouncing back is interesting—maybe value investors are finding opportunities.
Good that Nifty held above 23,900. The 23,800 support is crucial. I'm holding my IT stocks despite the dip—TCS and Infosys have strong fundamentals. West Asia tensions might be temporary, but our tech sector is globally competitive. 💪
Another day, another fall due to global factors. But honestly, I'm more worried about domestic issues like inflation and FII outflows. Pharma doing well is a silver lining, but youth need jobs and stable markets. Hope policymakers take note.
The US-Iran peace agreement sustainability concern is valid. But I feel our market is oversold today. Auto stocks will recover once crude cools down. Midcap and smallcap dips are buying opportunities for long-term investors. Patience is key! 📉➡️📈
M We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.