Closing Bell: Sensex drops 182 pts, Nifty ends at 24,751; auto, IT, metal drag

The Indian equity market started the June expiry on a muted note and ended marginally lower as caution prevailed in the market ahead of the highly awaited fourth quarter GDP figures set to be released later today. Investors also turned jittery amid global trade uncertainties after a U.S. court upheld President Trump’s tariff measures, while they awaited key economic data, including China’s official PMI data over the weekend and the RBI’s monetary policy decision next Friday.

The BSE Sensex closed 182 points, or 0.22%, lower at 81,451, and the NSE Nifty50 dropped 83 points, or 0.33%, to 24,751. In the broader market, Nifty Midcap100 and Nifty Smallcap100 ended marginally lower by 0.06% and 0.03%, respectively.

In the Nifty50 pack, Bajaj Auto , Hindalco Industries , HCL Tech , , Shriram Finance , and Nestle India were the top five losers, falling in the range of 3.10% to 1.69%. On the other hand, Eternal (Zomato) , State Bank of India (SBI) , HDFC Bank , Larsen & Toubro (L&T) , and Dr Reddy's Laboratories were the top gainers, rising between 4.98% to 0.22%.

On the sectoral front, the market saw broad-based selling across IT, metal, and auto space, while media, banking, and select Financial Services saw spurt in buying activities. The PSU banks were among top performers, while private banks saw mild buying interest.

On the derivatives front, the market breadth was negative, with 59 stocks advancing and 156 declining. “Notable open interest buildup was seen in Manappuram Finance, Chambal Fertilisers, Nykaa, Muthoot Finance, and SJVN, indicating heightened trader activity in these counters,” said Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity.

What lies ahead for the market?

Traders are now awaiting a fresh trigger to break the consolidation and resume the broader trend, said market analysts.

“Investors remained cautious amid lingering global trade uncertainties after a US federal appeals court upheld former President Trump’s tariff measures. Market participants are also awaiting key economic cues, including the US PCE price index due later today, China’s official PMI data over the weekend, and the RBI’s monetary policy decision next Friday,” said Kewat of Ashika Institutional Equity.

“In the meantime, one should align their trades with sectoral trends and themes that are attracting noticeable interest. We recommend maintaining a “buy on dips” approach, unless the Nifty decisively breaks below its first line of defense—the 20-day exponential moving average (DEMA), currently around the 24,600 level. A breach of this level could increase pressure and extend the current consolidation phase,” said Ajit Mishra – SVP, Research, Religare Broking.

Technically, the Nifty remained volatile with a slightly negative bias on the first day of the June series, said Rupak De, Senior Technical Analyst at LKP Securities. “On the smaller time frame, the index has formed a bearish moving average crossover. The RSI on the hourly chart indicates bearish price momentum, suggesting short-term weakness. Additionally, signs of exhaustion are visible on the daily RSI, accompanied by a strong negative divergence,” he said.

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