Sensex, Nifty end weaker in volatile session; HDFC twins fall

By Koustav Das: Benchmark stock market indices ended weaker on Wednesday after closing at record highs for four consecutive sessions. Today’s trading session was dampened by profit booking and high volatility.

The Nifty index closed marginally higher at 19,398.50, while the S&P BSE Sensex slipped slightly to 65,446.04. The broader market outperformed the larger peers, with smallcap and midcap indexes rising over 0.7%, both reaching new 52-week and record highs, respectively.

While heavyweight indices like Nifty Financial Services and Nifty Bank ended in negative territory, strong gains in auto and consumer stocks offset the decline.

Financial stocks faced selling pressure, with HDFC and HDFC Bank leading the losses, down more than 3 per cent each. This came after the NSE announced the removal of HDFC from the Nifty 50 index starting July 13.

On the other hand, FMCG stocks witnessed a record high, primarily driven by ITC amid reports of progress in the demerger of its hotels business.

In terms of individual stocks, Hero MotoCorp extended its gains, reaching a fresh two-year high following the launch of a bike developed in collaboration with Harley Davidson.

Bajaj Auto also performed well, advancing by 5.94 per cent after introducing two 400 cc bikes in partnership with Triumph Motorcycles from the UK.

However, market experts urge caution despite the positive outlook for domestic equities in the medium and long term. Factors such as selective selling at near record high levels, weakness in other Asian markets, and uncertainties surrounding monsoon conditions contribute to the need for careful consideration.

“Following today’s flat opening, the Nifty was unstable and volatile throughout the day, concluding near its initial levels and forming a doji on daily charts. Sectors like as auto and FMCG have showed strength, but banks and the financial industry have lagged,” said Deven Mehata, research analyst at Choice.

“For investors, the market is still buying on dips with a strict stop loss of 18950, and if the Nifty closes below the indicated level, we can expect more downward pressure,” he added.

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