Market Update: Sensex Dips as Profit-Taking Hits Banking and Energy Stocks
Market Overview
Mumbai: The BSE Sensex experienced a decline of 53 points during a volatile trading session on Tuesday, ending its four-day winning streak as investors engaged in profit-taking, particularly in the banking and energy sectors.
The 30-share index fell by 53.49 points, or 0.06%, closing at 82,391.72. Out of its components, 14 stocks closed lower, while 15 saw gains, and one remained unchanged.
Initially, the index opened positively, rising by 235.58 points, or 0.28%, to reach 82,680.79 in the morning. However, it later lost momentum due to profit-taking in major stocks like Reliance Industries, HDFC Bank, and ICICI Bank, dropping to a low of 82,240.40, down by 204.81 points or 0.24%.
Conversely, the NSE Nifty managed to gain 1.05 points, finishing at 25,104.25, marking its fifth consecutive day of increases.
Over the past four days, the Nifty has surged by more than 560 points, or 2.27%, while the Sensex has risen by 1,707.7 points, or 2.11%.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, commented, "The markets exhibited a lackluster performance, closing nearly unchanged as they took a breather following the recent rally. Investors are slightly cautious due to mixed global signals, and the varying trends among major index stocks are impacting overall market sentiment."
Among the Sensex constituents, stocks such as Asian Paints, Bajaj Finance, Tata Steel, Bajaj Finserv, ICICI Bank, Maruti, Reliance Industries, HDFC Bank, and Mahindra & Mahindra saw declines.
On the other hand, Tech Mahindra, Tata Motors, Infosys, HCL Tech, IndusInd Bank, and UltraTech Cement were among the gainers.
Investors are keenly awaiting the results of the US-China trade discussions taking place in London.
In related news, data from the Association of Mutual Funds in India (AMFI) revealed that net inflows into equity mutual funds fell by 21.66%, reaching a 12-month low of Rs 19,013.12 crore in May.
This marks the fifth consecutive month of declining inflows into equity funds, although it is the 51st month of net inflows into this segment.
Viraj Gandhi, CEO of SAMCO Mutual Fund, stated, "The Indian equity markets remained subdued throughout May 2025, impacted by a mix of geopolitical issues, profit-taking, and market consolidation. Following strong performances in previous months, high stock valuations led investors to adopt a more cautious approach, resulting in a significant slowdown in equity inflows."
In Asian markets, South Korea's Kospi and Japan's Nikkei 225 closed positively, while Shanghai's SSE Composite index and Hong Kong's Hang Seng ended slightly lower. European markets displayed mixed trends.
US markets mostly finished higher on Monday.
According to exchange data, Foreign Institutional Investors (FIIs) purchased equities worth Rs 1,992.87 crore on Monday.
Additionally, the global oil benchmark Brent crude rose by 0.39% to USD 67.19 per barrel.