The Indian stock market snapped a two-session gaining streak to close in the deep red on Monday, with Sensex and Nifty falling up to 0.5% as fresh escalations in the conflict between Iran and US in the Middle East spooked investors. Sensex fell over 372 points to close at 76,728 while Nifty 50 declined 110 points to end the session at 23,946. This came as the quarterly index rebalancing of several NSE indices took effect today.
Here's how analysts read the market pulse
Profit booking persisted near key psychological levels as investors remained cautious about the sustainability of the interim US–Iran peace agreement, said Vinod Nair, Head of Research, Geojit Investments. “The market currently lacks clear near-term direction, with expectations for the Q1 FY27 earnings season remaining subdued amid supply constraints, persistent inflationary pressures, and a weak monsoon outlook, all of which are likely to weigh on margins,” he added.
The analyst noted that selling was broad-based, however, defensive sectors such as pharma and healthcare outperformed, supported by their inelastic demand profile and earnings visibility. “Investors also remain cautious ahead of the upcoming U.S. nonfarm payrolls data, which could influence the Fed's policy trajectory and either reinforce or temper prevailing expectations of further rate hikes. A moderation in FII outflows in the domestic market, coupled with a normalisation of the global AI-driven market exuberance, could act as incremental triggers for improved market sentiment going forward,” he added.
US stocks
Wall Street's main indexes gained on Monday as easing tensions in the Middle East lifted sentiment following recent hostilities between the U.S. and Iran, while Comcast shares soared on plans to split into two companies.
Iranian and U.S. technical teams working to implement an interim peace deal are expected to meet in Doha in the coming days, a source told Reuters on Monday after strikes over the weekend threatened the fragile peace.
While diplomatic efforts to put an end to the conflict have calmed investors, caustic rhetoric and occasional flare-ups in the region have at times raised the risk of a broader escalation that could push oil prices higher.
European markets
European shares closed flat on Monday, with gains in technology stocks offset by declines in construction firms, while investors mulled the durability of a U.S.-Iran ceasefire after the two countries halted the latest bout of hostilities.
The pan-European STOXX 600 index closed 0.1% higher, after narrowly marking gains last week.
Tech view
The Nifty started the week on a weak note and remained under pressure throughout, as the index slipped below the 50 EMA on the hourly chart, said Rupak De, Senior Technical Analyst at LKP Securities. He noted that the momentum indicator also remained weak, with the RSI in a bearish crossover, indicating subdued near-term sentiment.
“Volatility may remain elevated in the very near term due to the NSE monthly expiry on Tuesday. However, the short-term trend remains constructive as long as the index holds above the 23,800 support level. Unless the Nifty falls below 23,800, a buy-on-dips strategy should be maintained. On the higher end, 24,200 is likely to continue acting as the immediate resistance,” according to the analyst.
Most active stocks in terms of turnover
HDFC Bank (Rs 3,732 crore), Persistent Systems (Rs 2,708 crore), MCX India (Rs 2,537 crore), Bharti Airtel (Rs 2,014 crore), Bajaj Finance (Rs 1,955 crore), GE T&D India (Rs 1,888 crore) and BHEL (Rs 1,860 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 1.04 lakh crore), Yes Bank (Traded shares: 18.39 crore), Canara Bank (Traded shares: 8.97 crore), NHPC (Traded shares: 8.58 crore), Motherson Sumi (Traded shares: 7.45 crore), Adani Power (Traded shares: 7.27 crore) and GMR Infra (7.03 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Zydus Wellness, Schneider, Ather Energy, Ami Organics, Honasa Consumer, Ajanta Pharma and ACME Solar Holdings were among the stocks that witnessed strong buying interest from market participants.
52-week high
Among the ones which hit their 52-week highs on NSE included Zydus Wellness, Schneider, Ather Energy, Ami Organics, Honasa Consumer, Ajanta Pharma and ACME Solar Holdings.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Persistent Systems, Netweb Technologies, Astral Poly Tech, Asahi India Glass, Supreme Industries, Latent View Analytics and L&T Tech.
52-week low
Among the ones that hit their 52-week lows on NSE included Persistent Systems, Supreme Industries, PI Industries, UPL, Bayer Cropsciences, Zensar Tech and Bharti Hexacom.
Sentiment meter favours bears
Out of the 3,470 stocks that traded on the NSE on June 29, Tuesday, 1,330 stocks witnessed advances, 2,036 saw declines while 104 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
