The Indian stock market witnessed a historic surge on Monday as the Sensex breached the coveted 76,000 level for the first time, while the Nifty soared to a new lifetime peak.
However, the euphoria was short-lived as profit booking ensued, causing both indices to close marginally lower by the end of the trading session.
The Sensex, comprising 30 blue-chip stocks, closed the day down by 19.89 points or 0.03%, settling at 75,390.50.
Earlier in the day, it soared to an all-time high of 76,009.68, registering a substantial gain of 599.29 points or 0.79%.
Similarly, the broader Nifty of the NSE dipped by 24.65 points or 0.11%, closing at 22,932.45 after touching a new peak of 23,110.80, up by 153.7 points or 0.66%.
The day's volatility was attributed to investors opting to capitalize on record levels, triggering profit booking across sectors.
This trend saw both indices shedding gains, with the Sensex plummeting around 835 points from its peak to touch a low of 75,175.27.
Among the key drivers of this market movement were select banking, financial, and IT shares, which witnessed significant gains earlier in the session.
However, the momentum faltered as concerns over profit-taking intensified, leading to a downward trajectory in the later part of the day.
Reliance Industries (RIL) and ITC emerged as the biggest drags on the indices, with RIL witnessing a nearly 1% decline, exerting downward pressure on benchmark performance.
Selling pressure was also observed in FMCG giant ITC, further dampening market sentiment.
Equity benchmarks had been on a record-breaking spree for the third consecutive day, buoyed by anticipation surrounding the results of the Lok Sabha polls and a rally in global markets.
However, as the trading session progressed, profit-taking emerged as a dominant theme, overshadowing earlier gains.
The ongoing general elections, with results slated for June 4, added an additional layer of uncertainty to market dynamics, prompting investors to tread cautiously amidst heightened volatility.
The journey to the 76,000-mark for the Sensex has been a swift one, taking merely 31 trading sessions since breaching the historic 75,000-level on April 9.
Similarly, the Nifty's ascent past the 23,000-mark on Friday marked a significant milestone, albeit tempered by subsequent profit booking.
From the Sensex constituents, notable laggards included Wipro, NTPC, Sun Pharma, Mahindra & Mahindra, ITC, and Reliance Industries.
Conversely, IndusInd Bank, Axis Bank, Bajaj Finance, HDFC Bank, Larsen & Toubro, and State Bank of India emerged as major gainers, bolstering market sentiment.
Analysts emphasised the significance of the 23,000-level resistance in the Nifty, coupled with a rise in the volatility index (India VIX), which surged nearly 7% to 23.13 points.
This dynamic limited the upside potential for the indices amidst prevailing market uncertainties.
In broader market trends, the BSE midcap gauge registered a modest uptick of 0.63%, while the smallcap index experienced a marginal decline of 0.09%.
Sector-wise, oil and gas, commodities, power, utilities, and consumer discretionary sectors witnessed declines, while financial services, industrials, IT, bankex, realty, and services posted gains.
Overall, the day's trading session reflected a blend of optimism and caution, with market participants navigating through volatile terrain amidst evolving domestic and global factors.
As the final phase of the general elections approaches on June 1, investors remain vigilant, anticipating further market movements in response to electoral outcomes.
In global markets, positive sentiment prevailed, with Seoul, Tokyo, Shanghai, and Hong Kong settling in the green. European markets mirrored this trend, while Wall Street concluded with gains on Friday.
Global oil benchmark Brent crude registered a modest increase of 0.38%, reaching USD 82.44 a barrel.
Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 944.83 crore on Friday, as per exchange data, further influencing market dynamics.
Friday saw the BSE benchmark closing marginally lower, while the Nifty briefly breached the 23,000 mark before ending the day with a slight decline.
Follow us
