Sensex, Nifty trade flat as crude oil declines, monsoon remains in focus
Mumbai, June 17
Domestic equity benchmarks traded flat in morning session on Wednesday after a three-day rally driven by lower crude oil prices and optimism over a US-Iran peace deal.
Sensex was trading at 76,817.58, up 8.58 points or 0.01 per cent, while Nifty was at 23,988, down 1 point in early trade.
Earlier in the day, the 30-share index opened higher, rising 284.69 points or 0.37 per cent to hit an intraday high of 77,093.17. The 50-script basket began the day at 24,044.50, up 58.89 points or 0.24 per cent.
On the sectoral front, Nifty Consumer Durables was the top performer, gaining 1.26 per cent, followed by Nifty IT and Nifty Media.
In addition, healthcare and pharma stocks remained in demand, with Nifty Pharma advancing 0.24 per cent and Nifty Healthcare rising 0.18 per cent.
In contrast, selling pressure was visible in metal and realty stocks. Nifty Metal fell 0.87 per cent, while Nifty Realty declined 0.68 per cent. Nifty Auto, Private Bank and PSU Bank indices also traded in the red.
Among the Nifty 50 constituents, Hindalco Industries, NTPC, Trent, ONGC, Bharti Airtel, Dr Reddy's Laboratories and Axis Bank were among the top losers.
According to market experts, two factors are likely to influence market trends in the near term -- one positive and the other negative.
"The positive factor is the steady and sharp decline in crude oil prices. Brent crude has fallen by around 16 per cent over the last five days to about $79 per barrel, easing concerns over a widening balance of payments deficit in India," they said.
The negative factor is the deficient monsoon, which is raising concerns about food inflation. However, experts noted that monsoon activity could improve in the coming days, as has happened in the past, easing such concerns.
The positive trend is likely to continue as the rupee has been steadily strengthening and could appreciate further, experts added.
On the commodities front, international benchmark Brent crude declined 0.72 per cent to $78.39 per barrel, while US West Texas Intermediate (WTI) crude decreased almost 1 per cent to $75.35.
— IANS
Reader Comments
Happy to see Nifty Consumer Durables and IT doing well! But why is Metal down when crude is falling? Shouldn't lower input costs help manufacturing? 🤔 Hoping the monsoon picks up soon, kharif sowing depends heavily on it. The experts are right, focus on fundamentals and don't panic.
Been investing in pharma for the long term, glad to see Nifty Pharma holding steady! Dr Reddy's being a top loser today is a bit concerning, but maybe just profit booking. The overall market mood seems cautiously optimistic. But honestly, I'll believe the monsoon forecast only when I see actual rains - too many false promises from IMD in past years.
Two steps forward, one step back - that's typical for our market! The crude oil decline is truly positive for our economy, but the deficient monsoon is a red flag for rural demand. Nifty Realty falling makes sense as higher food inflation could mean RBI won't cut rates anytime soon. 🏠 Keep calm and hold your positions, folks. Smart money is in IT and pharma right now.
Another flat day after a rally - markets are getting boring! 😅 But seriously, the crude decline is a blessing for India. Remember last year when petrol prices crossed Rs 100? Those days are fading. However, I wish the article had mentioned more about retail investor sentiment - we small investors are the backbone of the market now. Let's see if Nifty touches 24,500 by month end!
Good analysis from experts! One small criticism though - the
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