Business

IIE DIGITAL DESK : The Indian stock market witnessed a mild pullback on Tuesday as benchmark indices came under pressure from selling in FMCG and metal counters. The BSE Sensex slipped over 200 points, while the NSE Nifty 50 failed to hold the 24,800 level, marking a pause in the rally witnessed in the past few sessions. However, this correction in frontline indices stood in contrast to the persistent strength in the broader market, with midcap and smallcap stocks extending their winning streak for the fourth consecutive day.

The Sensex ended the session down 219.37 points or 0.27% at 81,774.41, and the Nifty 50 declined by 59.50 points or 0.24% to close at 24,774.25. Market sentiment was dented by weak cues from global equities and cautiousness ahead of key macroeconomic data due later this week 

Selling pressure was particularly pronounced in the FMCG and metals sectors, with major players like ITC, Hindustan Unilever, Tata Steel, and JSW Steel weighing heavily on the indices. The FMCG segment saw profit-booking after recent gains, while metals struggled on the back of weak international prices and concerns over demand from China.

The Nifty FMCG index ended down 0.9%, and the Nifty Metal index dropped 0.75%. Shares of ITC declined nearly 2%, while Tata Steel slipped over 1.5%, contributing significantly to the Sensex’s fall.

Market participants also remained wary ahead of the US PCE inflation data and GDP numbers, which could offer fresh insights into the US Federal Reserve’s stance on interest rates. Rising global crude prices, with Brent crude hovering around $84 per barrel, added to investor unease by stoking fears of persistent inflation 

Despite the weakness in largecaps, the broader market remained buoyant, with midcap and smallcap indices outperforming the benchmarks. The Nifty Midcap 100 gained 0.3%, while the Nifty Smallcap 100 advanced 0.4%, driven by strong buying interest in sectors like capital goods, auto components, and public sector enterprises.

Stocks such as RVNL, JBM Auto, BHEL, and Mazagon Dock saw significant traction, reflecting continued retail and domestic institutional participation. Analysts noted that mid and smallcaps are benefiting from improved earnings visibility and favorable domestic growth trends, although caution remains due to high valuations in some pockets 

Global equity markets were mixed, with Asian stocks trading in a narrow range and European indices opening flat to lower. The US markets remained in consolidation mode ahead of key inflation data, which is likely to influence expectations around a potential Fed rate cut later this year.

While the domestic economy remains fundamentally strong, traders opted for profit booking in heavyweight sectors after a sustained rally, leading to a breather in the market 

Market experts suggest that the current dip is part of a healthy consolidation phase. “The Nifty faces resistance around 24,850, and support lies near 24,600. A decisive move on either side may dictate the short-term trend,” said a senior analyst.

With the monthly F&O expiry on Thursday, volatility is expected to increase. Investors and traders are likely to stay cautious in the near term, awaiting clearer global cues.

Despite today’s mild decline, the broader structure of the market remains positive, especially in the mid and smallcap segments. Analysts advise a stock-specific approach and recommend avoiding overleveraged bets in volatile times.