Sensex, Nifty end lower: 3 reasons why markets stayed volatile today

The equity benchmark indices ended largely lower after a volatile trading session on Friday (June 5), with the Nifty slipping below the 23,400 mark as weakness in metal and IT stocks weighed on sentiment.

The Sensex fell 117 points to close at 74,243, while the Nifty declined 50 points to settle at 23,367.

Here are three key reasons why markets closed lower on Friday:1) Metal And IT Stocks Dragged Benchmarks Lower

Metal and information technology stocks remained under pressure through the session. The Nifty Metal index emerged as the top losing sectoral gauge, with Hindustan Zinc falling more than 6%.

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The Nifty IT index also extended losses for a third straight session. Tata Consultancy Services and LTIMindtree were among the top sectoral losers. Among Nifty stocks, Hindalco Industries, Wipro, Trent, Coal India and Tata Consultancy Services ended as the top laggards.

2) Broader Markets And Select Stocks Saw Selling Pressure

Broader markets also remained weak, with the Nifty Midcap index falling 212 points to close at 60,755. Hindustan Zinc, BSE, SAIL, Balkrishna Industries and Cochin Shipyard were among the top midcap losers during the session.

Shares of Go Digit General Insurance dropped 9% from the day’s highs after the company reported weak May general insurance data.

3) Banking Gains And Rupee Rally Limited Market Losses

Banking stocks outperformed the broader market, helping limit sharper losses in benchmark indices. The Nifty Bank index rose 188 points to close at 54,496, extending gains for a fourth consecutive session.

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From the Sensex basket, Adani Enterprises Ltd, Hindustan Unilever Ltd, Adani Ports & Special Economic Zone Ltd, Bajaj Finance Ltd, Axis Bank Ltd and Mahindra & Mahindra Ltd were the major gainers. Hindalco Industries Ltd, Wipro Ltd, Coal India Ltd, Trent Ltd, Tata Steel Ltd and Tata Consumer Products Ltd were the biggest laggards.

Meanwhile, the rupee posted its biggest single-day gain in more than two months. The domestic currency strengthened by 84 paise, or 0.9%, against the US dollar to close below the 95-per-dollar mark at its highest level in a month.

Zee Entertainment Enterprises also extended gains and has risen nearly 19% over the last three trading sessions. Market breadth remained neutral, with the NSE advance-decline ratio standing at 1:1.

Market This Week

Benchmark indices ended lower for the second straight week, with the Sensex and Nifty declining more than 0.5% each amid weakness across broader markets and select sectoral indices.

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The midcap segment underperformed the benchmark indices during the week, with the Midcap index falling more than 1%. Hindustan Zinc and PB Fintech emerged among the top losers in the segment. Patanjali Foods, IREDA and Aditya Birla Fashion were also among the major midcap laggards.

Banking stocks outperformed the broader market during the week, with the Nifty Bank index ending higher. Federal Bank, Canara Bank and State Bank of India were among the top gainers in the banking pack. Among sectoral indices, the capital market index posted the steepest decline during the week, followed by FMCG and realty indices.

More than 30 Nifty stocks ended the week with losses. NTPC, UltraTech Cement and Bajaj Finserv were among the top losers on the benchmark index. On the gaining side, Titan, Adani Enterprises, Coal India, Infosys and Eternal were among the top Nifty gainers during the week.

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