Sensex and Nifty News: Market Ends Flat; Mid & Small-Caps Under Heavy Pressure

Sensex and Nifty News: Market Ends Flat; Mid & Small-Caps Under Heavy Pressure

Market Performance

Indian stock markets witnessed a muted session on June 19, with frontline indices closing nearly flat as weak global signals and rising geopolitical tensions dulled investor appetite.

  • Sensex ended 82.79 points lower or 0.10% at 81,361.87
  • Nifty 50 fell 18.80 points or 0.08% to close at 24,793.25
  • Nifty Midcap 100 and Nifty Smallcap indices lost nearly 2% each

The market remained rangebound throughout the session, mirroring the lack of fresh domestic triggers and global uncertainty.

Main News: Fed Signals Hawkish Stance, Geopolitical Tensions Escalate

The US Federal Reserve maintained its policy rate for the fourth straight time but issued a warning over inflation risks linked to potential trade policies by former President Donald Trump.

Key Fed Announcements:

  • PCE inflation forecast for 2025 revised to 3.0% (from 2.7%)
  • GDP growth forecast for 2025 reduced to 1.4% (from 1.7%)
  • The slower pace of rate cuts anticipated—only two cuts projected in 2025

On the global front, rising tensions between Iran and Israel weighed heavily on investor sentiment.

  • 25 missiles launched by Iran targeted Israel
  • Reports indicate damage to the Israeli Stock Exchange building
  • Trump hinted at possible military action on Iran's nuclear sites
  • Iran responded with threats of "irreparable damage" if attacked

Company Details: Sector-Wise Market Performance

Sectoral Losers:

  • PSU Banks: Worst-hit sector with a 2% drop in the Nifty PSU Bank index
  • Media: Nifty Media index declined 1.78%
  • Realty: Nifty Realty index fell 1.55%
  • Metals: Nifty Metal index lost 1.21%
  • IT: The Nifty IT index slipped 0.96% due to the Fed's hawkish tone

Sectoral Gainer:

  • Auto Sector: The only gainer of the day, the Nifty Auto index rose 0.50%

Notable Gainers (Nifty Constituents):

Major Losers:

Domestic Economic Indicators Show Signs of Strain

Early signs of slower income growth in the Indian economy are becoming visible.

  • Advance tax collections for FY26 (as of June 15): ₹1.54 trillion
  • YoY growth: Only 4%, compared to 27% growth last year
  • Primary cause: Weaker personal income tax payments

Summary of the Article

On June 19, the Indian stock market remained subdued, with Sensex and Nifty closing slightly lower, while mid and small-cap stocks bore the brunt of the sell-off. The cautious stance of the US Federal Reserve, driven by fears over inflation and mounting geopolitical risks—especially the Israel-Iran conflict—contributed to dampened investor sentiment.

Back home, weaker advance tax collections signaled early signs of economic moderation. Sector-wise, all major indices closed in the red except for the auto sector, which emerged as the sole positive performer.

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