Introduction
India’s benchmark stock indices closed in the red on Tuesday, with the BSE Sensex falling 176 points to settle at 26,820.21, while the broader NSE Nifty 50 ended at 25,476.10, down 47.4 points. The decline was largely led by realty and metal stocks, with major drags from Vedanta, Tata Steel, and DLF. Weak global cues, ongoing profit booking, and cautious investor sentiment ahead of key economic data releases played a significant role in the market’s subdued performance.
This article delves into the factors that influenced the market’s trajectory today, the sectoral performance breakdown, major gainers and losers, expert opinions, and what investors should watch for going forward.
Market Summary
At close:
- Sensex: ↓ 176.1 points (0.64%) at 26,820.21
- Nifty 50: ↓ 47.4 points (0.19%) at 25,476.10
- Bank Nifty: ↑ 52 points (0.12%) at 56,120.90
- India VIX (Volatility Index): ↑ 3.25% at 13.74
The trading session started on a flat note and moved in a narrow range for most of the day, reflecting caution ahead of the release of India’s CPI inflation and IIP data. The pressure was visible in realty, metals, and media sectors, while select banking and IT stocks provided some cushion.
Key Drivers of the Decline
Global Market Weakness
Global markets remained subdued, especially after weak economic data from China and growing concerns over U.S. rate hikes. Asian markets like the Hang Seng, Nikkei, and Shanghai Composite all ended lower, exerting pressure on Indian equities.
U.S. Fed Chair Jerome Powell’s upcoming testimony and the release of U.S. CPI data have also made investors cautious, prompting profit booking in high-beta sectors like realty and metals.
Sectoral Underperformance
The Nifty Realty Index fell over 1.8%, dragged down by heavyweights like DLF (-2.9%), Godrej Properties (-1.6%), and Oberoi Realty (-1.3%). Rising interest rate concerns and reduced housing affordability are clouding the real estate outlook.
Similarly, the Nifty Metal Index slipped by 1.5%, with Vedanta (-3.1%), Tata Steel (-2.4%), and JSW Steel (-1.7%) weighing heavily. The downturn follows weak Chinese demand and declining global metal prices.
Profit Booking
After a robust rally in June and early July, investors are now taking some money off the table. Stocks that had surged sharply over the past few weeks—especially in realty, power, and midcaps—witnessed profit booking.
Sectoral Performance
Realty: Worst Performer of the Day
The real estate sector led the decline. With rising concerns over mortgage rates and unsold inventory, sentiment has turned cautious. This follows a stellar run for the sector in the last quarter, fueled by robust sales and launches.
- DLF: ↓ 2.9%
- Godrej Properties: ↓ 1.6%
- Oberoi Realty: ↓ 1.3%
Metals: Dragged by Global Weakness
Metal stocks were under pressure due to falling base metal prices globally. Weak Chinese demand, concerns over steel exports, and commodity price corrections contributed to the losses.
- Vedanta: ↓ 3.1%
- Tata Steel: ↓ 2.4%
- Hindalco: ↓ 1.9%
- JSW Steel: ↓ 1.7%
Banking & Financials: Mixed Day
Banking stocks showed resilience, with PSU banks and some private sector players managing marginal gains. ICICI Bank, HDFC Bank, and SBI helped limit losses.
- ICICI Bank: ↑ 0.6%
- HDFC Bank: ↑ 0.4%
- Kotak Bank: ↓ 0.5%
IT Sector: Stable Amidst Volatility
Despite global cues, IT stocks traded firm, supported by a weakening rupee and expectations of demand stability in key markets.
- Infosys: ↑ 0.8%
- TCS: ↑ 0.6%
- Wipro: ↑ 0.3%
Stock Highlights: Major Gainers & Losers
Top Nifty 50 Gainers
| Stock | % Change |
|---|---|
| Tech Mahindra | +1.2% |
| HCL Tech | +1.1% |
| Infosys | +0.8% |
| ICICI Bank | +0.6% |
| HDFC Bank | +0.4% |
Top Nifty 50 Losers
| Stock | % Change |
|---|---|
| Vedanta | -3.1% |
| Tata Steel | -2.4% |
| Adani Ports | -2.1% |
| DLF | -2.9% |
| JSW Steel | -1.7% |
Broader Markets
Broader markets mirrored the benchmark indices with a slight negative bias.
- Nifty Midcap 100: ↓ 0.45%
- Nifty Smallcap 100: ↓ 0.32%
While some mid- and small-cap stocks saw investor interest due to earnings expectations, the overall sentiment was subdued.
Market Expert Views
Ajit Mishra, SVP – Technical Research, Religare Broking :
“The market is in consolidation mode after a strong rally. Realty and metal stocks are facing headwinds due to global factors and valuation concerns. Traders should remain cautious with tight stop-losses.”
Jyoti Roy, Head of Equity Research, Angel One :
“There’s a wait-and-watch sentiment in the market currently. Investors are awaiting India’s inflation numbers, U.S. CPI data, and Q1 earnings season, which will set the tone for the rest of July.”
Upcoming Triggers
India CPI & IIP Data (Scheduled Tomorrow)
Investors await India’s Consumer Price Index (CPI) inflation print for June and Industrial Production (IIP) data, both of which will influence the RBI’s policy outlook.
U.S. Inflation Numbers
The U.S. CPI data for June will be released later this week, a key indicator for Fed’s stance on interest rates.
Q1 Earnings Season Kickoff
Major companies like TCS, HCL Tech, and Wipro are set to announce results this week. IT earnings will offer early insights into business sentiment for FY25.
Technical Outlook
On the charts, Nifty 50 has formed a bearish candle, suggesting a potential short-term pause. However, analysts see 25,350 as an important support level and 25,650 as resistance.
Sensex faces resistance near 27,000 and immediate support at 26,700.
Foreign Institutional Investors (FII) Activity
- FIIs: Net sellers of ₹1,143 crore
- DIIs: Net buyers of ₹872 crore
FIIs have been cautious over the past few sessions, booking profits in metal and energy stocks.
Investor Strategy: What Should You Do?
For Short-Term Traders:
- Maintain caution in high-beta sectors like realty and metals
- Focus on sectors with defensive strength such as IT and pharma
- Avoid aggressive positions ahead of inflation and earnings data
For Long-Term Investors:
- Use dips to accumulate quality stocks, especially in banking, auto, and infra
- Watch for earnings commentary to assess demand trends
- Diversify to manage volatility during global macro uncertainty
Conclusion
Tuesday’s market action highlighted the cautious stance among investors. With global cues turning uncertain and key data awaited, volatility is expected to remain high. Realty and metal sectors bore the brunt of the sell-off, but support from financials and IT kept the fall in check.
While the short-term may be marked by consolidation, the broader market trend remains structurally bullish, provided earnings growth sustains and macro indicators remain stable. Investors are advised to stay stock-specific and align their strategies with both global and domestic cues.
