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Indian Equity Markets Hit Record Highs Amid China Stimulus, Profit Booking Drags Indices Lower
Indian equity benchmark indices started Tuesday’s trading session on a volatile note but soon rallied to record highs, driven by positive cues from Asian markets. The surge followed the People’s Bank of China’s (PBOC) announcement of fresh measures to stimulate its sluggish economy, including broad monetary stimulus and property market support.
The SENSEX crossed the 85,000-mark for the first time, while the NIFTY50 touched a new milestone, breaching the 26,000-mark. However, profit booking at higher levels led to a pullback. By midday, the NIFTY50 was trading at 25,932, down by 2 points, while the SENSEX slipped 58 points to 84,869.
The Nifty Bank index also remained in the red, down 0.36% or 196 points, hovering near 53,909. Volatility, as reflected by the India VIX, surged past the 14-mark early on but later flattened.
Key stocks that helped contain the losses were L&T (+9.78 pts), Power Grid (+6 pts), and ICICI Bank (+5.17 pts). However, heavyweights like Hindustan Unilever (-12.34 pts) and Infosys (-10.43 pts) weighed heavily on the indices.
The NIFTY50 showed a slightly negative breadth, with 27 stocks declining against 23 advancing. The overall market breadth also indicated weakness, with 1,227 stocks falling while 1,153 advanced. Performance in the broader markets was mixed, with the Nifty Midcap 100 inching up 0.09%, while the Nifty Smallcap 100 declined by 0.44%.
Among sectoral indices, Nifty Metal emerged as the top performer, gaining 2% as all its constituents traded in green. The sector’s rally was fueled by China’s stimulus measures, which investors hope will revitalize demand for metals. Conversely, Nifty FMCG was the top laggard of the day.
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