Indian Markets Retreat as Trade Talks Loom; Investors Cautious
Overview
Indian equity benchmarks, Sensex and Nifty, trimmed earlier gains and turned negative on Monday. Investors awaited clarity on impending US-India trade discussions, leading to cautious trading. Mixed performances were observed across broader markets and sectors, while global cues showed mixed trends. Institutional flows revealed net selling by FPIs and net buying by DIIs.
Stocks Mentioned
Market Retreats Ahead of Trade Talks
Indian benchmark indices trimmed early gains and slipped into the red on Monday morning. Investors adopted a cautious stance ahead of crucial US-India trade discussions scheduled for the day. The BSE Sensex, which had earlier advanced nearly 270 points, turned lower, trading down 190 points or 0.23 per cent at 83,688. The Nifty50 also erased its early gains, hovering at 25,747, a drop of 43 points or 0.17 per cent.
Mixed Sectoral and Broader Market Performance
Performance in the broader markets remained mixed. The Nifty MidCap index edged down by 0.17 per cent, while the Nifty SmallCap index saw a marginal rise of 0.39 per cent. Among sectors, the Nifty PSU Bank index led the gains with an 0.88 per cent increase. The Nifty FMCG, IT, and Metal indices also posted modest gains of around 0.3 per cent each. Conversely, the Nifty Pharma index declined by 0.25 per cent.
Advancing and Declining Stocks
Several prominent stocks showed upward movement, with Eternal, Tech Mahindra, SBI, BEL, HDFC Bank, Maruti Suzuki, Hindustan Unilever, Titan Company, ICICI Bank, ITC, and Axis Bank rising up to 3 per cent. In contrast, L&T, Reliance Industries, Tata Steel, Mahindra & Mahindra, Trent, TCS, IndiGo, Bharti Airtel, and Sun Pharma traded in negative territory.
Global Cues and Currency Moves
Global markets presented a mixed picture. US equities had closed higher overnight, with the Dow and S&P 500 reaching record highs, supported by technology stocks and Walmart. Asian equities opened on a firm note on Tuesday. On the currency front, the US dollar weakened, while the Indian rupee recovered marginally, settling a paisa higher at Rs 90.16 against the USD on Monday, aided by a weaker dollar and lower crude oil prices.
Derivatives and Institutional Flows
In the derivatives segment, SAIL and Sammaan Capital remained under the F&O ban for Tuesday. Foreign Portfolio Investors (FPIs) were net sellers of equities worth Rs 3,638 crore on Monday. Domestic Institutional Investors (DIIs), however, provided support, being net buyers with inflows of Rs 5,839 crore.
