Mild Profit Booking Sees Indian Stock Indices Pick Marginal Losses

Taking mixed global cues, the Indian stock market indices traded cautiously on Tuesday and picked up marginal losses to settle in the red.

The Sensex settled at 73,904 points, down by 110 points or 0.15 per cent at the closing bell, while the broader Nifty 50 settled at 22,453 points, down by nine points or 0.039 per cent.

Both indices hit their all-time highs on Monday, that is, 74,254.62 points and 22,529.95 points, respectively.

Siddhartha Khemka, the head of retail research at Motilal Oswal Financial Services was quoted by ANI as saying, "After the strong move seen in the previous session, we expect the market to consolidate over the next few days keeping various key events in mind."

Ajit Mishra, the SVP Technical Research at Religare Broking said, "It's a healthy pause around the record high, which may extend for couple of sessions. We needs participation from the heavyweights, especially banking majors to trigger the next leg of upmove in the index. Meanwhile, the buoyancy in the broader market is encouraging but traders should stay selective and maintain a "buy on dips' approach."

The stock markets ended the financial year 2023-24 on a firm note as the Sensex and Nifty rose between 27 to 31 per cent taking cues from firm economic growth forecasts by various global watchdogs and political stability at the federal level.

Foreign portfolio investors continued their streak as net buyers in the Indian market, further boosting domestic stocks. After a spell of selling in January 2024, they flipped to being net buyers in February and March.

Latest data from the National Securities Depository Limited (NSDL) revealed that in March alone, foreign investors poured in Rs 35,098 crore into Indian stocks, with an additional Rs 2,355 crore invested on April 1.

Investor focus now shifts to the Reserve Bank of India (RBI) monetary policy meeting commencing on Wednesday, with the outcome scheduled for Friday morning.

The RBI, known for its bi-monthly meetings, reviews crucial aspects such as interest rates, inflation, money supply, and broader economic indicators.

In its February meeting, the Monetary Policy Committee, headed by RBI Governor Shaktikanta Das, opted to maintain the policy repo rate at 6.5 per cent, marking the sixth consecutive time of status quo.

Governor Das cited stable inflation and robust growth dynamics as the rationale behind the unchanged policy stance.

Although retail inflation in India sits within the RBI's comfort range of two-six per cent, it exceeded the ideal 4 per cent target in February, clocking at 5.09 per cent.

SBI Research suggests a potential rate cut cycle by the RBI in the third quarter of the current financial year 2024-25.

Vinod Nair, Head of Research at Geojit Financial Services, commented on the market's performance, stating, "The domestic market took a breather today after achieving a fresh record high yesterday. Factors such as a rising dollar, increasing US bond yields, and a notable uptick in crude oil prices collectively dampened investor sentiment...Investors are eagerly anticipating guidance from the upcoming RBI monetary policy announcement for insight into near-term market direction."

Also Read: Opening Bell: Indian Stock Makets In Red Amid Mixed Global Cues