Sensex ends flat, Nifty slips: 5 reasons why stock market lost momentum today

Sensex ends higher but off day's peak: Why stock market lost momentum today


The equity benchmark indices BSE Sensex and NSE Nifty erased early gains to end largely flat on Thursday (July 16), with weakness in financials and insurance stocks offsetting support from information technology (IT) shares and select earnings-driven gains.

The Sensex ended 1 point higher at 77,187, while the Nifty 50 slipped 6 points to 24,073. Broader markets remained under pressure, with the Nifty Midcap Index falling 256 points, or nearly 0.5%, to 62,687. Market breadth also weakened, with the advance-decline ratio ending at 4:5 in favour of declines.

Here are the key factors that shaped Thursday’s market action:1. Financials and insurance stocks weighed on benchmarks

Financial stocks dragged the Nifty lower, while insurance shares saw sharp declines following earnings. ICICI Prudential fell 3%, while ICICI Lombard dropped more than 10% after reporting a sharp increase in its combined ratio.

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2. IT stocks provided support

Buying in information technology stocks helped limit losses in the benchmark indices, even as weakness in financial shares capped the upside.

3. Corporate earnings drove stock-specific moves

BHEL gained 4% after reporting a healthy set of quarterly results. ABB surged 7% after ABB Plc reported an 81% jump in India order inflows.

On the downside, Prestige Estates fell 3% after reporting a sequential decline in pre-sales, while Angel One slipped 3% after reporting a decline in client acquisition during the first quarter.

4. PLI 2.0 lifted EMS stocks

Electronic Manufacturing Services (EMS) stocks advanced after developments related to PLI 2.0, with Dixon Technologies, Kaynes Technology, and Amber Enterprises posting gains.

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5. Select large-cap and mid-cap stocks outperformed

IndiGo emerged as the top Nifty gainer, rising nearly 2%, while Maruti Suzuki and Mahindra & Mahindra also ended higher.

From the Sensex basket, Wipro Ltd, HCL Technologies Ltd, Bajaj Finance Ltd, Maruti Suzuki India Ltd, Titan Company Ltd and ITC Ltd were the major gainers.

Eternal Ltd, SBI Life Insurance Company Ltd, TVS Motor Company Ltd, Bharat Electronics Ltd, Shriram Finance Ltd and Axis Bank Ltd were the biggest laggards.

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