Benchmark indices ended their four-day winning streak on Monday, with the BSE Sensex declining 452.44 points or 0.54 per cent to close at 83,606.46, while the Nifty 50 fell 120.75 points or 0.47 per cent to settle at 25,517.05. The market downturn was primarily driven by profit-booking at elevated levels across key sectors, including automobiles, FMCG, realty, and metals.

Despite the weak performance in frontline indices, broader markets showed resilience with the Nifty Midcap 100 gaining 356.05 points or 0.60 per cent to close at 59,741.20. The Nifty Next 50 declined 285.80 points or 0.42 per cent to 68,998.20, reflecting mixed sentiment across market segments.

Among sectoral indices, PSU banks emerged as the standout performers, with the segment rallying 2.5 per cent, led by State Bank of India, which gained 1.79 per cent to close at 819.85. “PSU banks stole the limelight, with the Nifty PSU Bank index rallying 2.7 per cent,” noted analysts from Bajaj Broking in their market commentary.

The top gainers on Nifty 50 were led by Trent, which surged 3.04 per cent to ₹6,202.50, followed by Bharat Electronics Limited gaining 2.00 per cent to ₹422.80. State Bank of India and IndusInd Bank also featured among the gainers, rising 1.79 per cent and 1.78 per cent respectively, to close at ₹819.85 and ₹873.00. Jio Financial Services rounded off the top five gainers with a 1.22 per cent increase to ₹327.40.

On the losing side, Tata Consumer Products led the decliners, falling 2.34 per cent to ₹1,098.00. Banking heavyweights Kotak Mahindra Bank and Axis Bank declined 2.17 per cent and 2.13 per cent to close at ₹2,160.00 and ₹1,199.00 respectively. Hero MotoCorp dropped 1.96 per cent to ₹4,235.60, while Maruti Suzuki fell 1.87 per cent to ₹12,406.00.

Market breadth remained positive with 2,362 stocks advancing against 1,750 declining issues on the BSE, where 4,290 stocks were traded. A total of 162 stocks hit their 52-week highs compared to 45 stocks touching 52-week lows. Seven stocks were locked in upper circuit while 14 stocks hit lower circuit limits.

“Today, the Indian stock market closed on a negative note with the Nifty 50 ending around 25,500, down approximately 120 points (0.47 per cent), and the Sensex falling about 452 points (0.54 per cent) to close near 83,606,” said Vaibhav Vidwani, Research Analyst at Bonanza Group. “The market downturn was primarily driven by losses in key sectors such as auto, FMCG, realty, and metals.”

Technical analysts highlighted the formation of bearish patterns on daily charts. “The index has formed a bearish engulfing candlestick pattern on the daily chart, indicating a potential short-term reversal and signaling profit booking at elevated levels following a sharp uptrend,” observed analysts from Bajaj Broking.

Vikram Kasat, Head - Advisory at PL Capital, noted that “Indian benchmark indices ended lower on Monday, weighed down by losses in financials and auto stocks, even as global cues remained broadly supportive.” He added that “despite a positive global setup and renewed FII interest, domestic markets remain under pressure due to profit booking and sector-specific weakness.”

The Nifty Financial Services index declined 169.60 points or 0.62 per cent to 27,174.45, while the Nifty Bank index fell 131.15 points or 0.23 per cent to 57,312.75, reflecting weakness in the financial sector despite PSU bank outperformance.

Shrikant Chouhan, Head Equity Research at Kotak Securities, commented: “Today, the benchmark indices witnessed profit booking at higher levels. The Nifty ends 121 points lower, while the Sensex was down by 452 points. Among sectors, the PSU Bank index outperformed, rallying 2.6 per cent, whereas intraday profit booking was seen in banking and financial stocks.”

Currency markets saw the rupee trading weak near 85.70, declining 0.21 per cent against the dollar. “Rupee traded weak near 85.70, down by 0.21 per cent, as capital market weakness and recent rupee gains prompted profit booking and long unwinding,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

In commodities, gold showed modest gains with prices rising 0.40 per cent to $3,290 in Comex and 0.50 per cent to ₹95,950 in MCX. “Gold traded with modest gains, rising by 0.40 per cent to $3,290 in Comex and 0.50 per cent to ₹95,950 in MCX, supported by weakness in the dollar index,” Trivedi noted.

Ajit Mishra, SVP Research at Religare Broking, maintained an optimistic outlook despite the day’s decline, “Some profit-taking in the index is natural after a strong uptrend, but trading opportunities remain abundant on the stock-specific front. We continue to advocate a ‘buy-on-dips’ approach, with a strong emphasis on selective stock picking.”

Looking ahead, market participants will closely monitor upcoming economic data releases and quarterly earnings announcements. “Markets will track June auto sales data, Q1 pre-earnings commentary, global oil price movements, and FII activity, which could steer near-term direction,” Kasat highlighted. The focus will also be on the tariff settlement with the US government as the deadline approaches, which could create uncertainty among investors in the coming sessions.

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Published on June 30, 2025