May 27, 2024
New Delhi, India
Sensex and Nifty End Flat Amid Volatility; Realty and Banks Show Gains
Indian stock market ended a volatile session on a flat note on May 27, after hitting record highs earlier in the day. Despite the initial surge, profit booking and mixed global cues led to a subdued close for the major indices.
Market Performance
The BSE Sensex closed 20 points, or 0.03% lower, at 75,390.50, while the NSE Nifty ended 25 points, or 0.11% down, at 22,932.45. Both indices had reached fresh all-time highs during the session, with the Sensex peaking at 76,009.68 and the Nifty at 23,110.80, before retreating due to profit booking.
Sectoral Highlights
- Realty and Banks: Gains in the realty and banking sectors provided some support to the indices. HDFC Bank, Axis Bank, and Larsen & Toubro were among the top gainers.
- Heavyweights Drag: Reliance Industries, ITC, and Mahindra were the major drags on the Nifty 50 index.
- Midcap and Smallcap Outperformance: The Nifty Midcap 100 index rose by 0.64%, and the Nifty Smallcap 100 index jumped by 0.81%, outperforming the benchmark indices.
Volatility and Investor Sentiment
The market saw a significant spike in volatility, with India’s VIX jumping nearly 7% to 23.19, reflecting increased investor caution. The VIX has surged over 80% in May, indicating heightened market uncertainty.
Investor Caution Ahead of Key Events
Investors are exercising caution and booking profits at peak levels to mitigate potential losses. This cautious approach is partly due to the upcoming Lok Sabha election results and the release of India’s Q4FY24 GDP data on Friday.
Conclusion
In summary, the Indian stock market experienced a volatile session, ending flat despite reaching new record highs earlier in the day. Gains in the realty and banking sectors were offset by profit booking in heavyweight stocks. With significant events on the horizon, including election results and GDP data, investors remain cautious, contributing to the heightened market volatility.
Disclaimer:
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