On Monday, benchmark stock market indices displayed significant volatility following the release of the Economic Survey, which presented a conservative economic growth forecast for the financial year 2024-25. This led to selling pressure and marginal dips by the end of the trading session.
The NSE Nifty 50 index closed down by 21.65 points at 24,509 points, while the BSE Sensex dropped 102 points to settle at 80,502 points. Sector-wise performance saw losses in Nifty Realty, Nifty Consumer Durables, and Nifty Private Bank, whereas Nifty PSU Bank and Nifty Pharma recorded gains.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The conservative economic growth forecast for FY25, presented in the economic survey, has introduced some spikes in volatility ahead of the budget. Additionally, the below-estimated Q1 results from certain index heavyweights like RIL have fueled apprehensions of a slowdown in earnings growth for FY25. Although the budget is anticipated to be favorable, investors will closely monitor whether it continues to drive traction, given high valuations and the risk of an earnings downgrade.”
Reliance Industries shares fell by over 3.4 percent to Rs 3004, reacting to the company's financial results announced on Friday. The top gainers on the Nifty 50 included NTPC, Grasim Industries, UltraTech Cements, HDFC Bank, and Power Grid Corporation. Meanwhile, major losers were Wipro, Kotak Mahindra Bank, Reliance Industries, SBI Life Insurance, and ITC.
Investors were also attentive to significant geopolitical developments, such as US President Joe Biden's decision to withdraw from the presidential race and endorse Vice President Kamala Harris, which influenced market sentiment.
According to market experts, several factors could impact the stock markets throughout the week. Finance Minister Nirmala Sitharaman is expected to present the Union Budget in Parliament on Tuesday. In the US, key economic data, including the Personal Consumption Expenditures (PCE) inflation index and the Q2 GDP estimate, are set to be released this week, providing insights ahead of the Federal Reserve's July meeting.
