The Indian stock market is expected to remain cautious as analysts suggest a sell-on-rise approach until the Nifty reclaims the 23,700 level. This comes amid mixed performances among heavyweight stocks and a weak broader index trend.
The US stock market experienced its worst day since October, with the S&P 500 dropping 2.6% due to a sell-off in big technology companies and a strong jobs report raising expectations of a potential Federal Reserve interest rate hike. The Dow Jones Industrial Average fell 1.4%, while the Nasdaq Composite slumped 4.2%.
In Europe, shares ended the week lower as uncertainty over Middle East peace efforts and a pause in technology stocks after a two-month rally contributed to a 0.3% drop in the STOXX 600 index. The euro zone's inflation acceleration in May has led markets to anticipate a 25-basis-point interest rate hike from the European Central Bank.
“While the broader index trend remains weak, mixed performance among heavyweight stocks is limiting the pace of decline. In this backdrop, we maintain a cautious stance and prefer a sell-on-rise approach until the Nifty decisively reclaims the 23,700 level.”
Ajit Mishra, SVP – Research, Religare Broking
On the BSE, stocks such as BSE (Rs 2,633 crore), ZEE (Rs 2,547 crore), and RIL (Rs 2,303 crore) were among the most active in value terms, while Vodafone Idea and Ola Electric led in volume terms. Stocks like ZEE and Adani Green showed strong buying interest, while Wockhardt and Hindustan Zinc faced selling pressure.
The sentiment meter on the BSE favored bulls, with 1,993 stocks advancing, 2,212 declining, and 194 remaining unchanged out of 4,399 stocks traded on June 5.
Background
The global stock markets are currently influenced by geopolitical tensions, particularly in the Middle East, and economic indicators such as inflation and employment data. These factors are affecting investor sentiment and market volatility.
As global markets react to geopolitical tensions and economic data, investors should monitor stock-specific opportunities and maintain disciplined risk management strategies. The focus will remain on the Nifty's ability to reclaim key levels and the impact of potential interest rate changes.
