The Indian stock market experienced a roller-coaster session on May 24, 2024, Sensex and Nifty managed to touch new record highs before closing the day slightly in the red. The day began with a promising start as both indices exhibited early momentum, surpassing their previous all-time highs, only to end the day on a muted note. Sensex closed down by 7.65 points at 75,410.39, and Nifty fell by 10.55 points to settle at 22,957.10.
This volatility came amidst a backdrop of robust activity from FIIs, who net bought shares worth ₹4,670.95 crores. DIIs, meanwhile, added ₹146.51 crore worth of shares to their portfolios, according to provisional data from the NSE. These figures underscore the ongoing confidence in the Indian equity market, despite the day’s lackluster close.
Global market trends and investor sentiment heavily influenced the trading session regarding potential shifts in US Federal Reserve policies. European stocks experienced a decline, reflecting apprehensions about the timing of the Fed’s next interest rate cut.
The Stoxx Europe 600 benchmark fell 0.5%, marking its first weekly retreat in three weeks. Technology and financial stocks led these declines. Meanwhile, in the US, stronger-than-expected business activity data had triggered the largest drop in the S&P 500 Index for the month, further adding to global market jitters.
During the day, Sensex opened lower at 75,335.45 and dipped to a low of 75,244.22. It also managed to reach a fresh all-time high of 75,636.50 in early trades before stabilizing. Similarly, the Nifty 50 opened at 22,930.75, hit a low of 22,908.00 and peaked at 23,026.40 during intraday trades. Despite this volatility, the indices showed resilience, supported by sectoral and stock-specific movements.
Nine out of the 30 stocks on the BSE Sensex ended in the green. Top gainers included HDFC Bank, Bharti Airtel, Larsen & Toubro, NTPC, and Axis Bank. Conversely, Tech Mahindra, Asian Paints, ITC, TCS, and Mahindra & Mahindra were the major laggards.
On the Nifty 50, 17 out of 50 stocks closed in the green, with HDFC Bank, Bharti Airtel, BPCL, Larsen & Toubro, and UltraTech Cement leading the gains. Adani Ports & SEZ, Tech Mahindra, Mahindra & Mahindra, JSW Steel, Titan, and Asian Paints were among the top drags.
Sector-wise, the performance was mixed. Banking, financial services, auto, media, and oil & gas sectors managed to stay afloat, closing in the green. On the other hand, the FMCG, IT, pharma, and healthcare sectors exerted downward pressure on the indices, closing in the red. The broader market indices also reflected this mixed sentiment, with the BSE SmallCap and MidCap indices ending slightly lower.
In the corporate earnings space, Hindalco Industries reported a significant 31.7% increase in Q4 net profit, while Ashok Leyland posted a 13.72% year-on-year rise in net profit. These strong performances were contrasted by Century Plyboards, which saw a 31% decline in Q4 net profit, highlighting the varied outcomes across different sectors.
The market’s cautious mood was also influenced by the global economic environment. The dollar saw its biggest weekly gain since early April, driven by expectations of a delay in the Federal Reserve’s rate cuts. Rate-sensitive Treasury yields traded just off recent highs, and minutes from the Fed’s May meeting indicated a cautious approach to rate adjustments.
Despite the lower close, the Indian stock market’s performance reflected underlying strength, supported by positive earnings reports and significant FII inflows. Investors remain watchful, balancing domestic growth prospects against global economic uncertainties. As the markets head into a long weekend in the US and UK, trading volumes are expected to taper, with attention likely shifting to upcoming corporate earnings and macroeconomic indicators.
