Monday rally fizzles: Profit-booking, energy stocks push Sensex over 600 points off peak

The 30-share BSE benchmark declined 20 points or 0.03% to settle at 75,390. The broader NSE dropped 25 points or 0.11% to end at 22,932.

, , , M&M, , and Reliance Industries were the top laggards, falling up to 2.3%. On the other hand, IndusInd Bank, Axis Bank, Bajaj Finance, and HDFC Bank ended higher.

The volatility index has surged almost 90% in the last one month, including climbing 6.8% on the day.

The 30-share BSE benchmark Sensex declined 20 points or 0.03% to settle at 75,390. The broader NSE dropped 25 points or 0.11% to end at 22,932.

Wipro, NTPC, Sun Pharma, M&M, ITC, and Reliance Industries were the top Sensex laggards, falling up to 2.3%. On the other hand, IndusInd Bank, Axis Bank, Bajaj Finance, and HDFC Bank ended higher.

The volatility index has surged almost 90% in the last one month, including climbing 6.8% on the day.

Cochin Shipyard closed 3.1% higher after the company reported multi-fold growth in its consolidated net profit to Rs 258.88 crore for the March 2024 quarter on account of higher income.

Divi's Laboratories shares also surged over 3% after the pharmaceutical company reported a nearly 68% rise in March-quarter net profit.

On the sectoral front, Nifty Media, Metal, and Oil & Gas closed 0.5% to 1% lower, while Nifty Bank, Financial Services, IT, Realty, and Consumer Durables closed higher.

The market breadth was skewed in the favour of the bears. About 2,252 stocks declined, 1,709 surged, and 144 remained unchanged on the BSE.

Expert Views

"The bulls are facing stiff resistance at 23,000 levels as investors start booking profit at higher levels to avoid any knee jerk reaction in the market ahead of the election result," said Vinod Nair, Head of Research, Geojit Financial Services.

"Better earnings growth, the expectation of a revival in private capex, and a moderation in FIIs’ selling intensity are the key positive triggers in the market. The release of India's Q4 GDP and US inflation figures this week will also influence investors to get a direction in the near term," Vijayakumar said.

Rupak De, senior technical analyst at LKP Securities, said, "The near-term outlook remains positive, with the index staying above the crucial moving averages. Support lies at 22,900, below which the index might slip towards 22,800. On the higher end, bears are active around 23,000-23,050. A decisive move above 23,050 might trigger a stronger rally towards higher levels."

Global Markets

World shares firmed up on Monday as investors braced for a busy run of inflation data that could set the scene for a European rate cut as soon as next week and a US policy easing within just a few months.

MSCI's broadest index of stocks gained 0.2%, having slipped 0.38% last week and just shy of an all time peak of over 796.

The pan-European STOXX 600 index was up 0.1%. With the US and UK markets closed on Monday, trading activity was light across the board.

Crude Oil

Oil prices were little changed on Monday, making marginal advances in muted trade owing to public holidays in Britain and the United States after a downbeat week characterised by the outlook for US interest rates in the face of sticky inflation.

The Brent crude July contract was up 21 cents at $82.33 a barrel. The more active August contract rose 26 cents to $82.10. US West Texas Intermediate (WTI) crude futures were up 23 cents at $77.95.

Indian Rupee

The Indian rupee closed slightly down on Monday, unable to build on recent gains as local dollar demand pressured the currency even as most of its Asian peers rose.

The rupee ended at 83.13 against the US dollar, against its close at 83.0975 in the previous session. The rupee had rallied to a two-month high of 83.0250 on Friday.