Mumbai, May 2024 Indian benchmark indices concluded on a negative note today, with the Nifty falling below 22,900 and the Sensex dropping 220 points, indicating a tumultuous trading session. The BSE Sensex closed 220.05 points, or 0.29% lower, at 75,170.45, while the NSE Nifty 50 fell 44.30 points, or 0.19%, to 22,888.20.
Market Performance and Sectoral Impact
The trading day began favorably but saw profit booking as it progressed, resulting in a consolidation phase for the Nifty. Despite a good start, the Nifty suffered selling pressure at higher levels, closing down about 44 points. Over the last three days, the Nifty has been stabilizing around 23,000, and this pattern is projected to continue till the May series expires. The support level is expected to be between 22,800 and 22,750, which corresponds to the 40-hour moving average.
The Bank Nifty also saw profit booking at higher levels, closing down about 140 points. Despite the decrease, many believe it is simply profit-taking rather than a trend reversal. The important support zone for the Bank Nifty is between 49,000 and 48,800, while the immediate resistance is between 49,350 and 49,500.
Sectoral and broader market indicators
The BSE Midcap and Smallcap indices fell by 0.5-1%, indicating broader market weakness. Oil and gas, public sector banks, power, and real estate all suffered losses of 1-1.5%.
Market Highlights & Analysis
The Sensex fell 262 points, or 0.35%, to 75,128.52, while the Nifty closed 64.10 points, or 0.28% lower, at 22,868.35. However, the Bank Nifty defied the trend and closed 222.65 points, or 0.45% higher, at 49,059.15. The Nifty Midcap 100 also fell, down 498 points or 0.94% to 52,263.85.
Commodity & Market Insights
In the commodities market, gold prices gained, recouping some of last week’s losses as traders remained cautious ahead of critical US inflation data. Silver prices rose by more than 4%, owing to Chinese government backing for the property sector, increasing industrial metal demand, and geopolitical worries. Notable occurrences included Israel-Egypt tensions, North Korean missile testing, and Chinese military drills near Taiwan.
Navneet Damani, Senior Vice President of Commodity Research at Motilal Oswal Financial Services, spoke on the geopolitical considerations that are driving the safe-haven appeal of gold and silver. He cited Shanghai’s steps to boost the real estate market, such as lowering down payment requirements and lending rates.
Corporate insights
Prabhudas Lilladher provided insight into Marico, highlighting the company’s ability to maintain gross margins despite a 20% increase in copra prices. Marico’s innovative pricing and market share gains from unorganized businesses have helped it thrive in the current market environment.
Conclusion
Today’s market session mirrored volatility and cautious investor attitude, with profit taking across key indices. As the Nifty consolidates, market participants will closely monitor the May series expiry date and impending economic data to forecast future moves.
