Mumbai, June 6: The Indian stock market’s key indices closed lower this week. The impact of some positive domestic policy measures was limited due to global uncertainties and external challenges.
During the week, the Nifty 50 recorded a decline of 0.77%. On the last trading day, Friday, the Nifty fell by 0.21%, closing at 23,366 points.
Meanwhile, the Sensex ended the week down by 116.67 points, or 0.16%, closing at 74,243.34. Overall, the Sensex experienced a decline of 0.71% throughout the week.
Geopolitical tensions in West Asia and fluctuations in crude oil prices continued to exert pressure on investor sentiment. However, some relief was provided by a slight easing in crude oil prices.
A market analyst noted that the Indian stock market traded within a limited range throughout the week, displaying a mildly negative trend. Nonetheless, some improvement was observed towards the end of the week.
Analysts indicated that the liquidity-boosting measures taken by the Reserve Bank of India’s Monetary Policy Committee (MPC) and the stability of the rupee helped bolster investor confidence.
However, a reduction in economic growth forecasts dampened investor enthusiasm, leading many to opt for profit-taking.
Experts believe that facilitating investments for foreign investors, reducing tax-related barriers in the bond market, and encouraging capital inflows are positive steps for the market.
During this period, the Indian rupee strengthened against the US dollar, falling below the 95 rupee mark. Investors welcomed the RBI’s efforts to attract foreign capital and stabilize the rupee.
Overall, despite external challenges, the market sentiment remained cautious yet stable due to domestic economic strength.
Market experts suggest that investors will now focus on the continuity of the RBI’s supportive policies, inflation trends, and the direction of bond yields.
They noted that the earnings season for companies has concluded, so the market may trade within a limited range. Investors will await clearer signals regarding economic growth and global stability.
In contrast, broader market indices performed differently from the major indices. The Nifty Midcap 100 index saw a sharp decline of 1.57%, while the Nifty Smallcap 100 index recorded only a 0.16% drop.
According to market experts, the Nifty faces strong resistance between the 23,450 to 23,550 levels, while the 23,250 level remains a significant support.
For the Bank Nifty, the 54,800 to 55,000 range is considered an immediate resistance zone, while the 54,000 to 53,800 range serves as crucial support.
Investors are now focused on the progress of the monsoon and its impact on rural demand.
Globally, the situation in West Asia and changes in crude oil prices will remain significant factors. Additionally, progress in trade talks between India and the US could provide new direction for the market.
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