Markets end flat amid Middle East tensions, Fed caution weighs on investors' sentiment
At the end of the trading session on Thursday, BSE Sensex settled at 81,361.87, slipping 82.79 points or 0.10 per cent, while Nifty 50 at National Stock Exchange (NSE) was down 18.80 points or 0.08 per cent at 24,793.25
Within the Nifty constituents, Tata Consumer, Eicher Motors, and Mahindra & Mahindra emerged as the top performers, offering some pockets of strength. In contrast, Adani Ports and Bajaj Finance weighed on the index, ending as top laggards.
From a sectoral perspective, Nifty Auto stood out as the sole gainer, while all other sectoral indices closed in the red. Nifty PSU Bank and Nifty Media were the top losers.
The market breadth remained extremely weak, as evident from the advance-decline ratio skewed heavily in favour of decliners. Out of the Nifty 500 universe, only 61 stocks managed to end in green, while a staggering 438 stocks closed lower, signalling deep-rooted selling pressure across the board.
Observing the market sentiment, Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities said, 'With major indices failing to show leadership and broader markets losing key supports, the overall structure remains fragile, and a decisive trigger is needed to break the prevailing range-bound phase.'
'The Indian market is currently in a state of indecision due to various macroeconomic factors. This uncertainty is also reflected in recent price movements, as Nifty formed a Doji high wave pattern on the daily timeframe,' said VLA Ambala, Co-Founder of Stock Market Today.
She added, 'The Fed's decision not to change interest rates represents a contrasting approach compared to the RBI and the government, who are confident about India's trade deals and the performance of the INR. However, market momentum and macroeconomic factors suggest that we remain vigilant. Any increase in inflationary pressure or signs of recession could cast a shadow over our markets.'
The banking benchmark index, Bank Nifty, slipped into negative territory on Thursday, mirroring the broader market's lacklustre tone.
However, for the third straight session, the banking benchmark has remained confined within a narrow trading range of 56067 to 55511, highlighting a phase of low volatility and indecision.
Amid the uncertain conditions, broader market volatility remains moderate. India VIX is currently at 14.26, reflecting volatile investor sentiment.
However, analysis suggests that an increase in volatility in the upcoming sessions is expected. (ANI)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
29 minutes ago
- Business Standard
Early monsoon may dent power cos earnings in near-term, say analysts
Above normal rainfall in summer months may have a bearing on the earnings of power-related companies in the near-term, cautioned analysts at SBI Capital. In a recent report, the brokerage pointed out that energy supplied slipped around 1.5 per cent year-on-year (Y-o-Y) in the April to June quarter of the current financial year (Q1FY26), the first decline seen in Q1 since FY16 (barring Covid-19 impacted FY21). This, the report added, was on the back of 60 per cent days in Q1FY26 seeing above normal rainfall, dipping the mercury. Conversely, there were only 12 days in which both maximum temperature and humidity were above normal levels. With this, peak power demand in May 2025 cooled off significantly to 231 gigawatts (GW) - off from the previous high of 250 GW hit in May 2024 (down 7.5 per cent Y-o-Y) "These trends point towards the halo of cooling requirement on power demand, which is only set to grow in the future. Given the volatile nature of weather-driven demand, this could pressure the financials of high-cost players in lean years, with them having to opportunistically play the merchant market during peak times to salvage their returns on equity (RoEs)," SBI Capital said. On the bourses, shares of companies involved in power generation have witnessed a mixed performance in Q1FY26. For instance, NTPC shares have declined over 6.4 per cent during the same period. JSW energy and Torrent Power have witnessed a similar downward trajectory, with stocks touching all-time low levels earlier this year, before erasing those losses due to the broader market revival. By comparison, the BSE Sensex index has jumped by nearly 8 per cent during the period, while the BSE Power index has underperformed the benchmark, rising by 5.2 per cent. Going ahead, analysts believe changes in weather can impact cooling demand greatly in the future. This means that volatility in power demand is set to increase, posing a challenge to both power generation and distribution companies in accurately forecasting the same and ensuring projects remain viable through lean periods. "Although the overall outlook for the power sector remains optimistic, supported by rising demand and sectoral tailwinds, the near-term outlook might witness pressure due to uneven weather conditions," concurred Kranthi Bathini, director of equity strategy at WealthMills Securities. As a strategy, he suggests investors take a buy-on-dips approach while the near-term headwinds play out. For the long-term outlook, investors might look to switch to an accumulate stance. The industry consolidation period is likely to wind down in the coming quarters, he said. Long-term plays That said, from a long-term perspective, analysts remain optimistic about the power sector's outlook, backed by structural tailwinds like rising power demand from data centre buildouts in the AI space. "Near-term headwinds might prove temporary, as several strong stocks have shown fresh breakouts on the charts after a period of consolidation. Plus, foreign institutional investors (FIIs) have also increased their holdings in power stocks, signalling a prospective rebound," said Ravi Singh, senior vice president for Retail research, Religare Broking. "The longer-term outlook looks quite bullish to me," he added. Notably, the International Energy Agency's (IEA) Global Electricity Outlook 2025 report said that India's electricity demand is projected to grow at an average annual rate of 6.3 per cent over the next three years, stronger than the 2015-2024 average growth rate of 5 per cent. Rating agency Icra, meanwhile, anticipates India's overall energy demand to rise by 6-6.5 per cent over the next five years, driven by the demand from rising adoption of electric vehicles (EVs), green hydrogen (GH), and the increase in data centre capacity. "These three segments are expected to contribute to 20–25 per cent of the incremental demand over the next five-year period from FY26 to FY30," the agency said.
&w=3840&q=100)
Business Standard
29 minutes ago
- Business Standard
Nuvama downgrades Trent to 'Hold' on slower growth outlook; stock bleeds 9%
Nuvama on Trent: Nuvama on Trent: Domestic brokerage firm Nuvama has downgraded Trent to 'Hold', flagging concerns around a slowdown in its core fashion business and a mismatch between current growth trends and the stock's steep valuation. The downgrade comes after Trent 's AGM, where the company indicated that its fashion segment is expected to grow about 20 per cent in Q1FY26E, considerably lower than its five-year compound annual growth rate (CAGR) of 35 per cent over FY20-25. On the bourses, Trent share price was under pressure, plunging up to 8.62 per cent to an intraday low of ₹5,653. At 9:17 AM, Trent share price continued to trade lower, down 7.05 per cent at ₹5,750. In comparison, BSE Sensex was trading 0.09 per cent higher at 83,318.12 levels. While the management reiterated its long-term ambition of achieving 25 per cent-plus growth over the next few years, Nuvama noted, 'The current run rate falls short of it,' prompting the brokerage to revise its FY26E/27E revenue estimates lower by 5–6 per cent and Ebitda projections by 9–12 per cent. Despite the near-term disappointment, management maintained an optimistic tone on the company's long-term prospects. At the AGM, it reaffirmed its vision to scale revenue 10x, noting that revenue has already doubled since this goal was set in FY23. This growth, according to the company, will be driven by robust expansion plans, including the addition of around 250 stores across formats in FY26. Nuvama acknowledged this ambition, saying, 'We remain confident of management beating this given the execution track record,' but added that this will take time to reflect meaningfully in financials. The brokerage also pointed to the potential of newer verticals like Zudio Beauty and Star Bazaar as future growth drivers. On Star Bazaar, Nuvama highlighted the management's bullish stance, which included commentary that it could eventually become a bigger business than Westside and Zudio, given the size of the food retail market. Besides, the company clarified there are no plans to merge Star Bazaar with Big Basket, positioning them differently in terms of product mix and pricing. However, near-term headwinds remain the core concern. Nuvama noted, 'Underwhelming near-term growth prompts the downgrade to 'Hold' as the current valuation is too demanding.' The revised target price stood at ₹5,884, down from the earlier ₹6,627. While a major pickup in Zudio Beauty or the Star business could serve as upside risks to its view, the brokerage believes these ventures need to stabilise before they can be scaled sustainably.
&w=3840&q=100)
Business Standard
30 minutes ago
- Business Standard
Latest LIVE: Heavy rains batter Himachal; 37 dead, ₹400 cr worth of damage estimated
Torrential rains have once again disrupted life across Himachal Pradesh, leaving more than 37 people dead and causing property damage worth over ₹400 crore, according to the State Disaster Management Authority. The India Meteorological Department (IMD) has issued a rain alert for the state until July 7, as monsoon showers continue to lash several regions. Officials from the Himachal Pradesh State Disaster Management Authority and the Revenue Department said the state has recorded losses exceeding ₹400 crore due to relentless rainfall. Rescue, relief, and search operations are in full swing, particularly in Mandi district, which remains the worst affected. Several roads in the region are blocked, and essential services have been disrupted. Prime Minister Narendra Modi began his first official visit to Trinidad and Tobago on Thursday (local time), where he was accorded a ceremonial Guard of Honour at Piarco International Airport. He was received by Prime Minister Kamla Persad-Bissessar, along with 38 ministers and four Members of Parliament from the Caribbean nation. This marks Modi's first visit to Trinidad and Tobago as Prime Minister, and the first bilateral visit by an Indian Prime Minister to the country since 1999. The visit is taking place at the invitation of Prime Minister Kamla Persad-Bissessar. During his two-day visit from July 3 to 4, Modi is scheduled to meet President Christine Carla Kangaloo and Prime Minister Persad-Bissessar to further strengthen bilateral ties. The Securities and Exchange Board of India (Sebi) has barred US-based trading firm Jane Street from accessing Indian securities markets for alleged manipulation. In an interim order, Sebi also directed the high-frequency trading firm to disgorge ₹4,844 crore in 'unlawful' gains. The ban will remain in effect until the firm complies with the order to surrender the alleged illegal profits. Sebi's investigation found that Jane Street was responsible for a substantial share of net buying in the 12 Bank Nifty component stocks and their futures. This 'burst of buying' was aimed at influencing the prices of these securities, enabling the firm to take significantly larger and more profitable positions in the highly liquid index options segment.
