The Indian stock market witnessed a range-bound session as the benchmark indices, BSE Sensex and NSE Nifty 50, closed with minor gains. Despite the lack of significant momentum, the market managed to recover in the last hour of trade, primarily driven by the financials and auto sectors.
The Sensex and Nifty 50 extended their winning streak, marking the third consecutive day of gains. However, the indices remained in a narrow trading range throughout the session. The midcap index continued its impressive performance, recording gains for the 12th consecutive session, showcasing the resilience and strength of the market.
IT stocks faced a slump during the session, with global IT major EPAM cutting its revenue guidance. This development had a negative impact on the sector, and as a result, Infosys witnessed a decline of nearly two percent. The IT sector's underperformance acted as a drag on the overall market.
On the positive side, auto stocks extended their gains, contributing to the market's recovery. Tata Motors saw an increase of 1.6 percent, while Maruti witnessed a rise of nearly two percent, reflecting the positive sentiment and investor interest in the sector.
Cement stocks ended on a higher note, with Nifty Infra hitting a record high and UltraTech Cement recording a gain of 2.9 percent. This uptrend in the cement sector signaled optimism and growth prospects in the infrastructure segment.
In specific stock-related news, IEX (Indian Energy Exchange) closed nearly four percent lower as May prices experienced a significant decline of 30 percent year-on-year. Thermax faced a decline of three percent as an arbitrator ordered the company to pay Rs 174 crore to a customer. On the other hand, JK Cement rose by 0.5 percent following its acquisition of Toshali Cements.
Bajaj Finserv ended 1.2 percent higher as the company ventured into the mutual fund business, attracting investor interest and contributing to its stock performance.
The market breadth favored advances, with an advance-decline ratio of 1:1, indicating a balanced market sentiment among investors.
In terms of market capitalization, BSE companies collectively lost over Rs 73,000 crore, reflecting the overall volatility and mixed performance of various stocks.
In summary, the Indian stock market concluded a range-bound session with minor gains. Financials and auto sectors played a pivotal role in the market's recovery, while IT stocks experienced a slump, acting as the biggest draggers. The market's resilience and the ongoing positive streak in the midcap index highlight the underlying strength and potential opportunities. Investors are advised to stay informed about market trends and closely monitor sectoral performances for potential investment prospects. The dynamic nature of the Indian stock market offers both challenges and exciting possibilities for market participants.