Nifty 50, Sensex open weak dragged by bank, metal stocks

  • Stock market today: Domestic benchmark indices Sensex and Nifty 50 opened lower due to SEBI's investigation into front-running at Quant Mutual Fund. Market breadth was weak with 19 Nifty 50 stocks advancing and 31 declining. Mixed global cues and profit booking influenced lackluster performance.

Dhanya Nagasundaram
Published24 Jun 2024, 09:23 AM IST
Stock market today: Nifty 50, Sensex open weak dragged by bank, metal stocks
Stock market today: Nifty 50, Sensex open weak dragged by bank, metal stocks(Photo: Bloomberg)

Stock market today: The domestic benchmark indices, the Sensex and Nifty 50, began Monday's session on a negative note due to a report indicating that the country's markets regulator was looking into claims of "front-running" at Indian fund company Quant Mutual Fund. Selling pressure in bank and metal stocks also weighed on the key indices amidst global economic uncertainty.

The 30-share BSE Sensex opened lower by 324.18 points or 0.42% at 76,885.65 level while the Nifty 50 started off at 23,382.30 level, down 118.80 points or 0.51%.

Among the Nifty 50 companies, 19 stocks advanced while 31 declined, indicating weak market breadth. The top gainers included Sun Pharma, Mahindra & Mahindra, Power Grid Corporation of India, ICICI Bank, and Nestlé India.

Also Read: Top Stock Recommendations: Dharmesh Shah of ICICI Securities suggests buying GAIL, and Kajaria Ceramics today

On the other hand, the major laggards were IndusInd Bank, Cipla, Tata Steel, Adani Ports and Special Economic Zone, and State Bank of India. Mixed global cues and recent patterns in profit booking contributed to the lackluster performance.

According to Ruchit Jain, Lead Research Analyst at 5paisa, Nifty 50 has seen a lower opening for the week, but has not yet breached its immediate supports, which are placed around 23,350 and 23,150 (20DEMA). This just seems to be a pullback move within an uptrend where stock-specific action would be seen in the near term while the index could see buying interest if it approaches the 20 DEMA support.

Also Read: Bank Nifty Share Price Live Updates: Bank Nifty is trading at 51205.15

On the broader market front, the Nifty Midcap 100 was trading 0.91% lower, while the Nifty SmallCap 100 ended down 1.21%, both underperforming the benchmark indices.

Since the SEBI was reportedly looking into claims of front running—that is, dealing on price-sensitive information prior to its public release—at Quant Mutual Fund on Sunday, the larger, more domestically focused small- and mid-caps were under scrutiny.

“The week has started on a negative note, with the broader market under pressure. Overall, a profit booking is happening with prices continuing to consolidate sideways. For the current monthly expiry, the next key support is at 23,200, which is 20 ema, whereas 23,600 remains a key hurdle,” Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.

The Nifty 50 finished last Friday's session at 23,501.10, down 65.90 points, and the Sensex closed at 77,209.90, down 269.03 points.

This week's cautious start was caused by selling pressure that pulled down the market. The Bank Nifty index began the day with a decrease of 381.20 points, or 0.74%, to 51,280.25, indicating a broader decline across all sectors.

Also Read: Nifty 50 Share Price Live Updates: Nifty 50 is trading at 23386.7

"The consolidation phase in the market is likely to continue. The near-term strength in the market is likely to come from Bank Nifty assisted by institutional buying notably from FIIs who have turned buyers last week. However, SEBI investigation in the Quant Mutual Fund is a slight sentiment negative for the market.

The sectoral churn happening in the market might accelerate since profit booking is happening in some overvalued sectors and money is flowing into fairly valued largecaps," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Also Read: Stock market today: Sensex, Nifty 50 end in the red on profit booking amid weak global cues

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.




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First Published:24 Jun 2024, 09:23 AM IST
HomeMarketsStock MarketsNifty 50, Sensex open weak dragged by bank, metal stocks

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