The Indian stock market closed lower on Monday, June 1, dragged by FMCG, auto and banking stocks despite positive cues from its Asian peers.
The investors remained cautious following persistent foreign fund outflows.
The market participants also seemed cautious ahead of the Reserve Bank of India policy meet scheduled later this week. The Reserve Bank of India MPC’s bi-monthly monetary policy meet will be held from June 3 to 5.
At close, the S&P BSE SENSEX stood at the 74,267.34 level, falling 508.4 points, or 0.68%, while the NSE’s NIFTY50 index declined 165.15 points, or 0.7%, to the 23,382.60 level.
Sensex had touched an intraday low of 74,203.68, while the 50-share gauge touched a low of 23,357.95.
Banking stocks ended lower on Monday, with the Nifty Bank index declining 1.1%. In contrast, IT stocks rallied sharply in an otherwise weak market, tracking strong gains in global technology and software shares.
According to exchange data, on Friday, the foreign institutional investors (FIIs) sold equities worth ₹21,105.86 crore on a net basis, while the domestic institutional investors (DIIs) purchased ₹16,764.14 crore worth of equities.
The RBI Governor Sanjay Malhotra-headed rate-setting panel started the three-day deliberations on Monday to decide the next bimonthly monetary policy amid expectations of a pause in the rate-easing cycle.
According to exchange data, on Friday, the foreign institutional investors (FIIs) sold equities worth ₹3,366.40 crore on a net basis, while the domestic institutional investors (DIIs) purchased ₹3,186.86 crore worth of equities.
On the global front, most of the stocks in Asia ended higher on Monday as investors were hopeful after President Donald Trump said the US and Iran are close to a “very good deal”, but if Washington does not get what it wants, then it will “end it in a different way.”
Trump said the Iranians are “good negotiators” but argued that the United States now holds “all the cards” because Iran has been “militarily defeated”.
South Korea’s KOSPI gained 3.55%, Japan’s Nikkei rose 1.01%, while Hong Kong’s Hang Seng advanced 0.86%. The Shanghai Composite, however, closed 0.27% lower.
Here are the key developments of Monday’s session that you need to know
Market statistics
As many as 3,452 stocks traded on the NSE on Monday. Out of this, only 1,151 advanced, and 2,202 declined, while 99 scrips remained unchanged.
This indicated that the market breadth was in favour of declines.
A total of 101 stocks hit their 52-week highs, while 74 stocks touched their one-year lows. Besides, 129 stocks hit their upper circuit limits, and 189 touched their lower circuit bands on Monday.
NSE-listed firms’ market capitalisation stood at ₹460.54 lakh crore at the end of the session.
The volatility index India VIX gained 2.2% to end at 16.54 levels.
Sectoral watch
Nifty FMCG was the biggest loser among sectors, sliding 2.3%, followed by Nifty PSU Bank (-1.85%), Nifty Realty (-1.83%), Nifty Auto (-1.7%), and Nifty Consumer Durables (-1.27%).
However, Nifty IT (2.66%), Nifty Media (1.37%) and Nifty Metal (0.49%) were the only sectoral gainers.
Broader market
The broader market underperformed the main equity indices, with the NIFTY Midcap 100 index dropping 1.45% to end at 60,827.95 levels, while the NIFTY Smallcap 100 gauge slipped 0.88% to close at 17,979.80 levels.
Top gainers and losers
As many as 40 stocks on the NIFTY50 index declined on Monday, while 10 closed in green.
Hindustan Unilever was the worst-performing stock, losing 2.87%, followed by Tata Consumer Products (-2.83%), ITC (-2.65%), Shriram Finance (-2.55%) and Mahindra & Mahindra (-2.48%).
On the flip side, Tech Mahindra (3.71%), Infosys (3.67%), Coal India (3.35%), JSW Steel (1.77%) and TCS (1.66%) were the top gainers on the 50-share index.