Sensex, Nifty 50 end flat amid profit booking in financials, realty; IT stocks outperform
Sensex and Nifty 50 ended flat on June 10, 2025, as profit booking in financials and realty offset gains in IT stocks. Adani Power surged 7%, while realty dipped 1.14%. Read more on market trends and investor outlook.
The Indian stock market closed on a muted note today, with the BSE Sensex and NSE Nifty 50 ending nearly flat as investors engaged in profit booking in the financials and realty sectors. However, IT stocks emerged as the standout performers, buoyed by optimism surrounding global trade developments. The Sensex settled 72 points lower, a marginal decline of 0.07%, at 82,372, while the Nifty 50 ended at 25,105, down 0.01%. Despite the lackluster close, the market displayed resilience amid mixed global cues and domestic monetary policy shifts.
Market Dynamics: A Balancing Act
The trading session on Tuesday was marked by volatility as investors cashed in on recent gains in financials and realty stocks, which had seen robust rallies in prior sessions. The Nifty Realty index was the top loser among sectoral indices, declining 1.14% as investors exited positions following a sharp uptick in real estate stocks. Similarly, the banking sector faced pressure, with the Nifty PSU Bank index dropping 0.52% and the Nifty Bank index falling 0.37%. Profit booking in these sectors offset early gains, leading to a flat close for the benchmark indices.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The market’s consolidation today reflects cautious profit-taking after recent gains in financials and realty. Investors are reassessing positions amid evolving global trade dynamics and the RBI’s latest policy signals.”
In contrast, IT stocks provided a silver lining, with the Nifty IT index rising over 2% during the session. Optimism surrounding ongoing U.S.-China trade talks fueled gains in major IT companies, as investors anticipated potential benefits for India’s tech sector from a more stable global trade environment. Stocks like Infosys, TCS, and HCLTech were among the top performers, contributing to the sector’s outperformance.
Standout Performers and Laggards
Among individual stocks, Adani Group companies were in the spotlight, with Adani Power leading the pack by surging 7%. Other notable gainers from the Nifty 500 included Reliance Power, Jindal Saw, and Alok Industries, each posting gains exceeding 2.5%. Bajaj Finance also made headlines, rising 2.67% to ₹9,623 after announcing a 1:2 stock split and a 4:1 bonus issue, with June 16, 2025, set as the record date.
On the downside, realty and financial stocks faced selling pressure. The Nifty Realty index’s decline was driven by profit-taking in stocks like DLF and Godrej Properties, which had rallied significantly in recent weeks. PSU banks, including State Bank of India, also saw outflows, reflecting investor caution after a strong run.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, “The realty and financial sectors have been outperformers recently, but today’s profit booking suggests investors are locking in gains ahead of potential volatility. IT stocks, however, are benefiting from positive global sentiment, particularly around trade talks.”
Broader Market Context
The flat close comes on the heels of a volatile week for Indian markets, which have been navigating a mix of domestic and global factors. On June 6, the Reserve Bank of India (RBI) surprised markets with a 50-basis-point cut in both the repo rate and the cash reserve ratio (CRR), triggering a broad-based rally, particularly in financials and realty. The Nifty ended that week with a 1% gain, while the Sensex also closed higher.
However, global uncertainties, including U.S. tariff policies under President Donald Trump, continue to keep investors on edge. While a federal court ruling recently blocked some of Trump’s proposed tariffs, concerns about trade disruptions linger, impacting market sentiment. The RBI’s decision to end daily variable rate repo (VRR) auctions amid a liquidity surplus added another layer of complexity, signaling a shift in monetary policy that could influence market dynamics in the coming weeks.
The broader markets showed mixed performance, with smallcap and midcap indices outperforming the benchmarks on Monday, June 9, with gains exceeding 1%. However, today’s session saw these indices align more closely with the flat trajectory of the Sensex and Nifty 50.
Investor Outlook: Cautious Optimism
Looking ahead, analysts expect the Indian market to remain range-bound in the near term, with potential for selective buying in sectors like IT and telecom, which have shown resilience. The RBI’s accommodative stance and expectations of stable liquidity are likely to support market sentiment, particularly for interest-rate-sensitive sectors like financials and realty, despite today’s profit booking.
Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty 50 is holding steady above the 25,000 mark, which is a positive sign. However, resistance near 25,200 could cap upside moves in the short term. Investors should focus on fundamentally strong stocks in IT and selective financials for opportunities.”
Global developments, particularly U.S.-China trade talks and their implications for Indian IT firms, will remain a key monitorable. Additionally, the upcoming weekly options expiry for Nifty 50 contracts could introduce volatility, with investors closely watching corporate earnings and macroeconomic data for further cues.
For retail investors, the current market environment calls for a balanced approach. Experts recommend focusing on quality stocks with strong fundamentals, particularly in sectors like IT, which are less exposed to domestic policy shifts. Diversifying portfolios and avoiding overexposure to volatile sectors like realty could help mitigate risks in the near term.
Conclusion
Today’s flat close for the Sensex and Nifty 50 underscores the market’s delicate balancing act between profit-taking and selective buying. While financials and realty faced headwinds, IT stocks demonstrated resilience, driven by global trade optimism. As investors navigate a complex landscape of domestic policy shifts and global uncertainties, a cautious yet opportunistic approach will be key to capitalizing on market movements in the coming weeks.
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