Sensex, Nifty Pare Early Gains to End Marginally Higher as Metal, Energy Stocks Drag

Mumbai, June 25: Indian benchmark indices surrendered most of their intraday gains on Thursday to close modestly higher, as selling in metal, energy and IT stocks offset strength in autos and FMCG shares. The Sensex rose 109.25 points, or 0.14%, to close at 77,100.47, while the Nifty 50 gained 34.35 points, or 0.14%, to settle at 24,056.00 after briefly trading at significantly higher levels during the session. 

Early rally loses steam 

Markets opened on a firm note, aided by easing crude oil prices and positive global cues. However, the momentum faded through the day as investors booked profits in several heavyweight sectors, causing benchmark indices to erase much of their gains by the closing bell. 

Market breadth remained weak despite the positive close. On the NSE, 2,488 stocks declined compared with 1,544 advances, while 180 shares remained unchanged, indicating that selling pressure was broader than the benchmark performance suggested. 

Autos shine, airlines gain 

Sensex peaked around noon before giving up gains and finishing much lower. Source: BSE 

The auto index emerged as the top-performing sector, rising more than 2%, supported by gains in automobile manufacturers. Lower crude oil prices continued to boost sentiment toward fuel-sensitive sectors, helping airline stocks remain among the market’s standout performers. 

Among the Nifty constituents, InterGlobe Aviation, the parent of IndiGo, was the biggest gainer. Other notable winners included Mahindra & Mahindra, Max Healthcare Institute, Maruti Suzuki India and Tata Consumer Products. 

Investors continued to favour companies expected to benefit from easing fuel costs and resilient domestic consumption trends, supporting the broader auto and consumer segments. 

Metal and energy counters weigh on sentiment 

The positive impact of gains in autos and FMCG was offset by weakness in metal, energy and oil & gas stocks. Sectoral indices for energy, metals, oil & gas, media and information technology ended in the red, falling between 0.5% and 1%. 

Among the biggest laggards on the Nifty were ONGC, Power Grid Corporation, Hindalco Industries, Bharat Electronics and Tech Mahindra. Selling in metal stocks reflected caution over global demand trends, while energy counters gave up ground despite lower crude prices. 

FMCG provides defensive support 

Nifty 50 ended slightly above the flatline helped by autos and FMCGs. Source: NSE  

FMCG stocks offered support to the market, with the sector index advancing 0.7%. Realty shares also ended higher, gaining 0.3%, as investors rotated into relatively defensive and domestic-focused segments. 

The mixed sectoral performance underscored the lack of broad-based participation in the rally, with investors remaining selective amid an uncertain global backdrop. 

Broader market underperforms 

The broader market lagged the benchmarks, with both the Nifty Midcap and Nifty Smallcap indices declining 0.5%. The weakness suggests that risk appetite remained subdued despite the positive close in frontline indices. 

Overall, Thursday’s session reflected a tug-of-war between optimism over lower crude prices and profit booking in cyclical sectors, leaving the Sensex and Nifty to finish only marginally higher after a stronger start to the day. 

Source

•  NSE
• BSE