Stock Market Daily Roundup: Day ends with FII's continue selling trend

The Indian stock markets closed with a subdued performance after a volatile trading session. The BSE Sensex ended the day at 75,676.45, down 262.73 points or 0.35%. The NSE Nifty 50 settled at 22,883.60, registering a decline of 49.30 points or 0.21%. Meanwhile, broader market indices continued to outperform, with the BSE MidCap index rising 0.85% and the BSE SmallCap index gaining 1.15%. The Nifty 500 also closed in positive territory, up by 0.35%, reflecting resilience in the wider market despite the benchmark indices’ losses.

Key Highlights:

Market Sentiment: The session saw a cautious start with a gap-down opening, as indicated by GIFT Nifty trends, with the India VIX dropping 3.12% to 14.22, suggesting a slight easing of market uncertainty. Posts on X noted a range-bound consolidation for Nifty between 22,700 and 23,000.
Top Gainers: NTPC led the gainers on the Nifty 50, rising 3.45% to ₹326.40, followed by Shriram Finance, up 3.88% at ₹577.90, and Mahindra & Mahindra, which gained 2.54% to close at ₹2,815.20.
Top Losers: HDFC Bank was among the notable losers, declining 2.48% to ₹1,681.25. Other drags included IT heavyweights like TCS and Infosys, with the Nifty IT index shedding 1.1%.
Sectoral Performance: Sectoral indices showed mixed results. The Nifty Bank index fell 0.62%, reflecting pressure on banking stocks. Conversely, broader market segments like midcaps and smallcaps outperformed, supported by domestic buying, while the Nifty Metal index rose 1.3%.
FII and DII Activity: Foreign Institutional Investors (FIIs) sold shares worth ₹2,145 crore, continuing their selling trend, while Domestic Institutional Investors (DIIs) were net buyers at ₹1,780 crore, providing some counterbalance.

Notable Corporate Updates:

HFCL: The company’s stock surged after bagging a ₹2,501 crore BharatNet project, boosting its telecom infrastructure outlook.
JSW Energy: Shares rose 6.8% following Morgan Stanley’s ‘overweight’ rating reaffirmation.
Narayana Hrudayalaya: Hit a 52-week high amid strong healthcare sector demand, while Orchid Pharma’s regulatory challenges added pressure to the pharma sector.

Market Context:

The marginal decline in benchmark indices came amid global cues, with the S&P 500 near record highs despite a U.S. Federal Reserve pause on rate cuts. Domestically, concerns over U.S. tariff threats, a weakening rupee, and persistent FII outflows kept markets cautious. However, the outperformance of midcap and smallcap indices suggests sustained domestic investor confidence in the broader market, with an RBI bulletin hinting at a pickup in economic activity.