Indian Equity Markets Witness Mixed Performance Despite Morning Highs

India’s equity markets exhibited a mixed performance on Monday, experiencing a roller-coaster ride as indices reached new heights in morning trade before settling nearly flat by the end of the session.

The Sensex and Nifty started the day on a strong note, touching all-time highs of 81,908 and 24,999, respectively.

Positive global cues and strong buying interest across various sectors fueled the morning rally.

However, the momentum waned as profit-booking set in, leading the indices to close with minimal gains.

The Sensex ended the day up by 23 points at 81,335, while the Nifty edged up 1.25 points to finish at 24,836.

The trading session saw a divergence in performance among sectoral indices.

Gains were observed in the auto, PSU bank, pharma, metal, realty, and energy and infrastructure sectors.

Conversely, the IT, financial services, and FMCG sectors lagged behind.

In the broader markets, the Nifty Midcap 100 index rose by 593 points or 1.03% to 58,362, and the Nifty Smallcap 100 index climbed 189 points or 1% to 19,043, indicating robust buying interest in midcap and smallcap stocks.

Prominent gainers in the Sensex pack included L&T, Bajaj Finserv, M&M, Ultratech Cement, SBI, Reliance, IndusInd Bank, Sun Pharma, Maruti Suzuki, and Bajaj Finance.

On the flip side, Titan, Bharti Airtel, ITC, Tech Mahindra, and Kotak Mahindra Bank emerged as the top losers.

Markets’ Optimism Attributed To US PCE Decline & 10-Year Yield Drop

Market experts attributed the initial optimism to a decline in the US personal consumption expenditure (PCE) to 2.5%, coupled with a subsequent drop in the US 10-year yield.

This scenario bolstered hopes that the Federal Reserve might consider cutting interest rates in September, sparking a global market rally.

Despite the positive global sentiment, the Indian markets experienced profit-booking as traders opted to lock in gains amidst overbought conditions.

The Indian rupee traded sideways, hovering near 83.73 against the US dollar, which remained strong above $104.20, reflecting cautious trading in the currency market.

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