Sensex and Nifty News: Markets Remain Flat Amid Sectoral Shifts

Indian benchmark indices, the Sensex and Nifty, concluded Tuesday's trading session essentially unchanged. This stability followed profit booking in the financial and real estate sectors, while IT stocks continued to demonstrate strong performance.

Market Performance

• The Nifty 50 closed at 25,105, a slight 0.01% drop.
• The Sensex finished 72 points lower, or 0.07%, at 82,372 points.
• Broader markets also saw limited movement.
• The Nifty Midcap 100 and Nifty Smallcap 100 indices posted minor gains.

Key Market Movements

Profit booking impacted the financial and realty sectors. Investors locked in gains from recent rallies in these areas. In contrast, IT stocks outperformed the broader market, driven by optimism around global trade developments.

Company Highlights

• Several Adani Group stocks saw positive movement.
• Adani Power emerged as the top gainer, surging 7%.
• Other Nifty 500 stocks, such as Reliance Power, Jindal Saw, and Alok Industries, also recorded gains of over 2.5%.
• In total, 24 stocks from the Nifty 500 pack ended with gains exceeding 2.5%.

Financial Data Overview

Mutual Funds:

• Inflows dropped to a 13-month low in May.
• This marks the fifth consecutive monthly decline.
• Large-, mid-, and smallcap funds all reported reduced inflows.
• Net inflows into equity mutual funds fell 21.66% to ₹19,013.12 Crore in May.
• However, the overall Net Assets Under Management (AUM) of the mutual fund industry reached ₹72.20 lakh Crore. This is up from ₹69.99 lakh Crore in April.
• The mutual fund industry saw total net inflows of ₹29,108.33 Crore in May.

Systematic Investment Plan (SIP):

• Monthly SIP inflows rose by 0.21% to a new high of ₹26,688 Crore in May.
• The number of contributing SIP accounts increased to 8.56 Crore in May. This is up from 8.38 Crore in the previous month.
• Monthly SIP inflows for April were ₹26,632 Crore.

Economic and Global Updates

The RBI announced it would discontinue daily Variable Rate Repo (VRR) auctions starting June 11, 2025. This decision stems from a liquidity surplus in the banking system, which currently stands at approximately ₹3 lakh Crore.

Internationally, Commerce and Industry Minister Piyush Goyal highlighted concerns over China's restrictions on rare earth exports. He noted China controls 60% of rare earth production and 90% of refining. This situation poses potential short-term disruptions for India's auto and white goods sectors. High-level US-China trade talks are ongoing in London, aiming to ease current disputes.

Sectoral Performance

• Among 13 major sectoral indices, five ended in negative territory.
• The Nifty Realty index was the top loser, declining 1.14%. This was due to continued profit-taking after a recent sharp rally.
• Banking stocks, particularly those of public sector undertakings (PSUs), also saw profit booking. The Nifty PSU Bank index lost 0.52%, and the Nifty Bank ended 0.37% lower.
• Conversely, IT stocks performed well, driven by optimism surrounding US-China trade discussions.
• Other gainers included the Nifty Media, Pharma, Metal, FMCG, and Consumer Durables indices, all of which closed up by more than 0.31%.

Summary of the Article

The Sensex and Nifty witnessed a relatively flat trading session. This was mainly due to profit booking in the financial and real estate sectors, offset by substantial gains in IT stocks. Key economic data revealed a decline in mutual fund inflows but a rise in Systematic Investment Plan (SIP) contributions and overall mutual fund assets under management (AUM). Economic developments included the RBI's decision on VRR auctions and global discussions around rare earth elements and US-China trade. This highlights a market navigating various domestic and international factors.