Markets slip from record highs as profit-booking erases GDP-fueled rally

Indian Stock Market Closes Marginally Lower Amid Global Weakness and Record Low Rupee

The Indian stock market closed marginally lower on Monday, despite touching fresh all-time highs, as investors booked profits at elevated levels amid weak global cues and a rupee hitting a record low against the dollar.

Benchmark Indices Suffer Losses

• The Nifty fell 27.20 points (0.10 per cent) to close at 26,175.75 after touching an intraday high of 26,325.80 in early trade.
• The Sensex declined 64.77 points (0.08 per cent) to settle at 85,641.90, down from its opening level of 86,065.92.

Shrikant Chouhan's Analysis

“After a gap-up open, the market consistently faced selling pressure at higher levels. On daily charts, it has formed a bearish candle, indicating further weakness. However, the short-term market sentiment remains positive,” said Shrikant Chouhan, Head Equity Research at Kotak Securities.

Strong GDP Data and RBI Policy Meeting

The morning optimism was driven by Friday’s robust GDP data showing India’s economy expanded 8.2 per cent in the second quarter, marking the fastest growth in six quarters. However, the strong growth print dampened expectations of a near-term RBI rate cut, pushing bond yields higher and weighing on sentiment ahead of the central bank’s policy meeting this week.

Top Gainers and Losers

• UltraTech Cement Ltd emerged as the top gainer on Nifty 50, surging 3.56 per cent to ₹12,013 from its previous close of ₹11,600.
• Tata Motors rose 1.88 per cent to ₹363.50, while Maruti Suzuki advanced 1.42 per cent to ₹16,125.
• Max Healthcare tumbled 2.67 per cent to ₹1,131.80 from ₹1,162.80, while IndiGo fell 2.19 per cent to ₹5,772.50.

Market Breadth and Sentiment

• Market breadth remained weak with 1,836 stocks advancing against 2,405 declining on the BSE, where 4,455 stocks were traded.
• 151 stocks hit 52-week highs while 197 touched 52-week lows.

Expert Analysis

“Sentiment drew support from strong GDP data reinforcing India’s economic momentum, positive global cues—particularly from US markets—and steady DII buying which offset FII outflows,” said Ajit Mishra, SVP Research at Religare Broking.

The Indian rupee extended its losing streak for the fourth consecutive session, hitting a fresh all-time low of 89.75 against the dollar before closing at 89.56, down 10 paise.

Looking Ahead

Analysts expect the consolidation to continue in the near term. “The index is expected to find support near the 26,100 zone, with major support around the 20-DEMA, currently near 25,950. On the upside, a decisive break above 26,300 could open the gates for a move towards the 26,500+ zone,” said Ajit Mishra.

Market participants will closely watch the RBI policy decision and key US economic data releases this week for further direction.