Mumbai Equity Markets Exhibit Flat Trading Amid Mixed Sentiments
Indian equity indices exhibited a subdued performance on Tuesday, reflecting a mixed sentiment across the markets. At 9:51 a.m., the Sensex registered a minor decline of 76 points, or 0.09%, trading at 82,483. The Nifty followed suit, decreasing by 17 points, or 0.07%, to stand at 25,261.
Despite the flat movement at the headline indices, the broader market trend remains constructive. On the Bombay Stock Exchange (BSE), 2,039 shares experienced gains, 829 shares witnessed losses, and 128 shares remained unchanged. Midcap and smallcap stocks outperformed their large-cap counterparts. The Nifty Midcap 100 index advanced by 229 points, or 0.39%, to reach 59,382, while the Nifty Smallcap 100 index rose by 116 points, or 0.60%, settling at 19,359.
Sectoral performance displayed divergence, with Realty, FMCG, Metal, PSU Banks, Media, Energy, and Auto sectors showing notable gains. Conversely, the Financial Services, IT, and Services sectors experienced losses. Within the Sensex pack, top gainers included Sun Pharma, ITC, M&M, Power Grid, HDFC Bank, Tata Steel, Nestle, Wipro, NTPC, Axis Bank, and Tata Motors. On the other hand, Bajaj Finance, Bajaj Finserv, Infosys, Maruti Suzuki, ICICI Bank, Tech Mahindra, Titan, and TCS were among the prominent decliners.
Market analysts highlighted two prevailing trends. The first trend reflects a positive momentum in the secondary market, characterized by the accumulation and appreciation of high-quality stocks such as Bajaj Finance, ITC, Bajaj Auto, and Maruti. Conversely, there is a growing concern over inflated valuations in certain mid and small-cap segments. The second trend pertains to the SME IPO market, where several small and medium-sized enterprises with questionable credentials are witnessing oversubscription, followed by manipulated trading and upper circuit drives post-listing.
Internationally, most Asian markets showed a mixed performance. Markets in Tokyo, Shanghai, Hong Kong, Seoul, and Jakarta were largely in the red, while Bangkok experienced gains. The US markets were closed on Monday in observance of Labor Day.
Foreign Institutional Investors (FIIs) continued their buying spree, purchasing equities worth ₹1,735.46 crore on Monday. In contrast, Domestic Institutional Investors (DIIs) acquired equities worth ₹356 crore on the same day.
As the trading session progresses, market participants will closely watch further developments and sectoral performance to gauge the direction of the equity indices.
