The Indian stock market closed the trading session on a flat note as profit booking, particularly in consumer and IT stocks, counterbalanced gains observed in the automotive sector following the announcement of significant tax reductions under the proposed “GST 2.0” overhaul. The S&P BSE Sensex saw a slight decline of 7.25 points, or 0.01%, finishing at 80,710.76, while the NSE Nifty 50 managed a marginal increase, rising 6.70 points, or 0.03%, to settle at 24,741.
Analysts noted that while equities remained flat, overall sentiment was mildly positive. Vinod Nair, Head of Research at Geojit Investments, observed that key indices rebounded from earlier intraday lows due to buying at support levels. The auto sector showed extended gains as expectations of a revival in demand emerged, while broader markets displayed stronger performance, particularly among mid- and small-cap companies as domestic investors shifted their focus to value and growth opportunities beyond the large caps.
Global market cues also provided some support, with U.S. and Asian markets showing positive trends ahead of an important jobs report from the U.S., which is anticipated to influence expectations surrounding Federal Reserve rate cuts. Looking ahead, analysts expect the market to remain range-bound, advocating for strategies that include buying on dips and selling on rallies.
In the U.S., equities closed lower as investors deliberated a softer-than-expected jobs report that ignited concerns regarding the economic recovery pace. The Dow Jones Industrial Average dropped 239.72 points, or 0.53%, closing at 45,381.03. Similarly, the S&P 500 and the Nasdaq Composite saw declines of 31.30 points and 53.41 points respectively.
European markets followed suit, relinquishing early gains primarily due to losses in energy and financial shares. The pan-European STOXX 600 index fell 0.16% to close at 541.21. Energy stocks, heavily impacted by slipping oil prices and rising supply expectations, led the declines.
On the technical front, the Nifty closed above its 21-day moving average, positioned around 24,700. However, it faced resistance near the 50-day moving average, around 24,980, which aligns with the upper boundary of a symmetrical triangle pattern. Nilesh Jain, Head of Technical and Derivatives Research Analyst at Centrum Broking, emphasized that for a fresh uptrend, a decisive breakout beyond 25,000 is essential. A successful move above this level could pave the way for a rally towards 25,300, eventually reaching 25,500, while immediate support is noted at 24,520, suggesting that the Nifty is expected to consolidate within a broader range of 24,400 to 25,000 in the coming week.
Top traded stocks by value included Ola Electric Mobility, Netweb Technologies, and Gujarat Mineral Development, with significant volumes also appearing in shares such as Vodafone Idea and YES Bank. Stocks identified with robust buying interest included Netweb Technologies, Brainbees Solutions, and Vodafone Idea, among others.
In contrast, shares facing significant selling pressure included established names such as ITC, HCL Tech, and Infosys. The market sentiment was neutral, with 1,957 stocks declining compared to 2,134 that advanced, and 169 remaining unchanged out of 4,260 traded on the BSE.
As the market navigates through these fluctuations, investors are keeping a close watch on economic indicators and market developments, particularly in light of upcoming fiscal policies and external economic cues.
