Nifty and Sensex Dip, On July 2, the Indian stock market saw minor declines in its main indices, Nifty and Sensex, following record-breaking highs at the market’s opening. Profit-taking in the banking and automobile sectors was the primary driver behind this dip.
By the end of the trading session, the Sensex had decreased by 0.02 percent to close at 79,461, while the Nifty fell by 0.06 percent to settle at 24,127. The market saw mixed activity with 1,729 stocks advancing, 1,692 declining, and 75 remaining unchanged.
Market Sentiment and Sector Performance
Experts highlight that profit booking in a rising market is a typical occurrence and doesn’t necessarily indicate a shift in overall market sentiment. Factors such as the return of Foreign Institutional Investors (FIIs), anticipation of the upcoming budget, and policy stability contribute to a generally positive outlook among investors.
Out of the 13 sectoral indices, the banking, automobile, FMCG, and healthcare sectors ended in the red, with the banking sector experiencing the most significant losses. Major banks like ICICI Bank, Kotak Mahindra, and SBI were among the top decliners. In contrast, the IT, realty, and energy sectors performed well, with companies like L&T, Wipro, Infosys, HDFC Bank, and TCS emerging as the top gainers.
Expert Insights
Aditya Gaggar, Director of Progressive Shares, remains optimistic about the market’s uptrend, suggesting that buying on dips could be a beneficial strategy. He noted that the market’s downside appears to be protected at the psychological support level of 24,000, with an immediate resistance at 24,230.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed that despite the market opening at an all-time high of 24,236, it failed to sustain an upward momentum. He mentioned that the market exhibited a narrow range with a weak bias, leading to a close near the day’s low. Shetti believes that this phase of consolidation or minor dips could present buying opportunities.
Volatility and Market Dynamics
The India VIX, a measure of market volatility, decreased by about 1.4 percent to settle at approximately 13.6. This decline in the volatility index indicates a reduction in market fear, suggesting a relatively stable trading environment.
Overall, while the market experienced a minor setback after its initial surge, the long-term outlook remains positive, supported by robust investor sentiment and strategic buying opportunities during market dips.