Indian markets experienced high volatility at the end of the week as investors booked profits, leading to marginal declines in both the Nifty and Sensex indices. The Nifty 50 index reached a new high during the opening session but closed at 23,501.10 points, down 65 points, while the BSE Sensex closed at 77,209, down 269 points. Concerns over the slow progress of the monsoon and underperformance in the FMCG sector led to minor profit booking, while a heatwave in Northern India drove up consumer durables stocks.
Global markets were subdued due to weak guidance from Accenture, leading to profit booking in US tech stocks. However, domestic IT stocks saw buying interest as weaker earnings had already been factored in. The upcoming GST meeting is now in focus, with discussions on the potential rationalization of GST rates in certain sectors. Heavyweight stocks such as HDFC Bank, Reliance Industries, and L&T experienced significant selling pressure, leading to the overall decline in the market.
Despite the overall decline, some stocks managed to perform well in the Nifty 50 index, including Bharti Airtel, LTIMindtree, and Infosys, while others like Ultratech Cements, BPCL, and Tata Motors saw losses. In the broader market, all indices closed with declines except for Nifty Midcap 50 and Nifty Midcap Select. The rupee faced a slight negative bias against the US Dollar due to strong US treasury yields and disappointing manufacturing and services PMI data from Germany and the Eurozone.
In the oil market, WTI crude oil futures rose for the fourth consecutive day, supported by heightened geopolitical tensions in Gaza and Lebanon. US crude inventories showed a surprise decline last week, further bolstering oil prices amid expectations of increased travel demand over the US Fourth of July holiday period. The market remains volatile as investors continue to monitor global and domestic economic factors, with the upcoming GST meeting and monsoon progress playing crucial roles in the coming weeks.
