Indian equity markets witnessed a volatile trading session on Tuesday, as investors chose to lock in profits following a strong four-day rally. While the Nifty 50 briefly tested the psychological barrier of 25,100, it faced stiff resistance at that level. The Sensex ended slightly in the red, losing 53.49 points or 0.06 per cent to close at 82,391.72. The Nifty, however, managed to finish marginally higher by just 1.05 points, ending the session at 25,104.25.
Market breadth was mixed, with 2,160 stocks advancing, 1,722 declining, and 136 remaining unchanged.
Real Estate, Banking Stocks Under Pressure
The real estate sector saw the most significant correction, retracing recent gains triggered by the Reserve Bank of India's policy easing. Investors opted for profit booking after the central bank slashed the benchmark lending rate by 50 basis points and lowered the Cash Reserve Ratio (CRR) by 100 basis points. Banking and financial stocks also felt the pressure from the same policy-induced profit-taking.
IT Stocks Lead Gains Amid Global Optimism
In contrast, the IT sector emerged as the top performer. The segment benefited from positive cues, including upbeat US employment data and renewed optimism around potential trade negotiations between the US and China. These developments prompted investors to shift focus toward technology counters.
Broader Market Shows Caution
Midcap and smallcap indices largely mirrored the cautious sentiment. The Nifty Midcap 100 index slipped slightly into the red, while the Nifty Smallcap 100 eked out modest gains. The India VIX index, a gauge of market volatility, cooled down by 4.5 per cent, settling near the 14-mark, indicating declining investor anxiety.
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Mutual Fund Inflows Dip, SIP Contributions Hit New High
Data from the Association of Mutual Funds in India (AMFI), released on June 10, revealed that net inflows into equity mutual funds dropped 21.66 percent in May, falling to a 12-month low of Rs 19,013.12 crore. However, overall assets under management (AUM) for the mutual fund industry rose to a record Rs 72.20 lakh crore, up from Rs 69.99 lakh crore in April, buoyed by mark-to-market gains.
Despite the slowdown in equity fund inflows, systematic investment plans (SIPs) remained resilient. Monthly SIP inflows climbed slightly by 0.21 percent to hit a new high of Rs 26,688 crore in May. Additionally, the number of active SIP accounts increased to 8.56 crore, up from 8.38 crore in April.