The stock market indices, S&P BSE Sensex and NSE Nifty50, both saw a slight decline today. The Sensex fell by 0.3% to close at 74,482.78, while the Nifty50 dropped by 0.2% to settle at 22,604.85 points.
On Tuesday, major stock indices experienced a decline mainly driven by a drop in Information Technology (IT) stocks. The S&P BSE Sensex fell by 0.3% to close at 74,482.78 points, while the NSE Nifty50 ended 0.2% lower at 22,604.85 points.
Towards the end of the trading day, there was profit-taking activity that resulted in the Nifty easing from its recent record highs. Similarly, the Sensex lost momentum after approaching its previous high level. Investors were cautious and reduced their investments in the stock market ahead of the US Federal Open Market Committee (FOMC) meeting outcomes. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., highlighted these factors affecting the market movements.
Today, there was a shift in the stock market as we saw a decrease in banking, IT, metals, and oil & gas stocks, causing a change in the usual trend. However, there was a noticeable increase in the buying activity for automobile and realty stocks, which helped balance the overall situation.
Even though the market went down on this particular day, both stock market indices managed to end the month with gains of 1.2% and 1.1% respectively. This positive outcome was largely due to the strong performances of key companies like Reliance Industries, ICICI Bank, and Wipro.
The Nifty IT index faced a 1.1% decrease during the trading session as investors awaited the outcome of the Federal Reserve’s upcoming policy meeting. The decision made by the US central bank regarding interest rates could have an impact on the market moving forward.
According to the CME’s FedWatch tool, there is a 97.3% likelihood that interest rates will remain unchanged in May 2024. This is an increase from the 90.7% probability recorded at the end of March.
In other news, the Nifty financials sub-index continued its upward movement by 0.1%, setting a new record high at 21,841.15. This helped offset some of the losses incurred during the day. However, Indian Oil Corporation (IOC), the leading refiner in the country, experienced a nearly 5% drop in its shares as its quarterly profit more than halved. As a result, the Nifty oil and gas index fell by 0.6%, ending the day flat and emerging as the top loser in the Nifty energy index.
Overall, seven out of the 13 major sectoral indexes closed in the negative zone. It’s worth noting that Indian markets will be closed on Wednesday for a public holiday and will resume trading on Thursday, May 2nd.