Sensex, Nifty 50 end flat amid profit booking in financials, realty; IT stocks outperform
Stock market today: Domestic benchmark indices were little changed in Tuesday’s trading session as investors locked gains in financials, which saw a stellar rally in recent sessions, while the realty stocks also saw profit-taking from investors. The IT stocks, however, managed to beat the market amid global trade hopes.
The Nifty 50 ended the session at 25,105, a 0.01% drop, while the Sensex settled 72 points, or 0.07%, lower at 82,372 points. Broader markets also paused, with the Nifty Midcap 100 and Nifty Smallcap 100 indices eking out minor gains.
In terms of individual stocks, major Adani Group stocks ended the session positively, with Adani Power emerging as the top gainer, rallying 7%. Other stocks including Reliance Power, Jindal Saw, Alok Industries and 21 other counters from the Nifty 500 pack ended with gains of over 2.5%.
Mutual fund inflows dropped to a 13-month low in May, marking the fifth consecutive monthly decline, with large-, mid-, and small-cap funds all reporting reduced inflows.
On the economic front, the Reserve Bank of India (RBI) announced it will discontinue daily Variable Rate Repo (VRR) auctions starting June 11, 2025, due to a liquidity surplus in the banking system reaching approximately ₹3 lakh crore.
Commerce and Industry Minister Piyush Goyal has called China’s rare earth export restrictions a global “wake-up call,” highlighting the risks of over-reliance on a single supplier, as China controls 60% of rare earth production and 90% of refining.
Speaking in Switzerland, he warned of short-term disruptions for India’s auto and white goods sectors due to the curbs, which mandate special export licenses for seven rare earth elements and related magnets.
Meanwhile, high-level US-China trade talks began in London on Monday and were set to continue today, as both sides sought to shore up a fragile truce in a dispute that has expanded from tariffs to restrictions on rare earth elements. Last week, US President Donald Trump said that he held a phone call with his Chinese counterpart, Xi Jinping. Previously, the two countries accused each other of violating their preliminary trade deal.
Investors are also looking ahead to US inflation data due later this week for insights into the Federal Reserve’s monetary policy path.
Sectoral Performance: Realty stocks drag, IT pack shines
Among 13 major sectoral indices, five closed in the red, with the Nifty Realty index emerging as the top loser, dropping 1.14% as investors continued to exit real estate stocks after a recent sharp rally. Banking stocks, especially PSUs, also saw profit-booking, causing the Nifty PSU Bank index to lose 0.52%. The Nifty Bank, too, ended 0.37% lower.
On the upside, IT stocks outperformed on optimism over the ongoing U.S.-China trade talks. Other gainers included the Nifty Media, Pharma, Metal, FMCG, and Consumer Durables indices, all closing up over 0.31%.
Commenting on today’s market performance, Vinod Nair, Head of Research, Geojit Investments Limited, said, “Domestic equity benchmarks traded within a narrow range as investors adopted a cautious approach following the recent rally driven by favourable domestic macroeconomic indicators and concerns over stretched valuations. However, the overall sentiments remained on the positive side on account of optimism around U.S.-China trade negotiations. Additionally, a firm U.S. dollar acted as a tailwind for export-oriented sectors, particularly IT and pharma, which attracted strong buying interest.”
Uptrend in Nifty will continue as long as it holds above 24,850, says expert
Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty has sustained above the previous consolidation zone on the daily timeframe, indicating a continuation of the uptrend. This positive sentiment is likely to persist, and the sentiment favours long trades as long as the index remains above the key support level of 24,850. On the higher side, the index may move towards 25,350 in the short term, with the potential for an extended rally if it breaks decisively above 25,350. However, a fall below 24,850 could trigger a correction.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
