Indian Stock Market Maintains Cautious Stance as Majority of Stocks Decline
The Indian stock market’s key indices, Sensex and Nifty 50, experienced cautious trading on Tuesday, May 21st, with the majority of stocks seeing declines. The Sensex closed the day with a marginal decrease of 53 points, settling at 73,953.31, while the Nifty 50 saw a slight uptick of 27 points, closing at 22,529.05.
One of the highlights of the day was the market capitalization of companies listed on the BSE reaching a new high of $5 trillion. This milestone was achieved for the first time this year, with an increase of over $633 billion from the beginning of the year.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on this achievement, stating that the $5 trillion market cap reflects the sustained momentum of the Indian stock market. He noted that the contribution to this milestone came from the broader market, with significant contributions from PSUs.
Looking ahead to Wednesday’s trading, experts provided insights on the outlook for the Nifty and Bank Nifty indices. Rupak De, Senior Technical Analyst at LKP Securities, highlighted the range-bound movement of the Nifty between 22,400 and 22,600, with strong put writing providing support. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, pointed out key levels for the Bank Nifty index to watch for potential trending moves.
In terms of stock recommendations, experts like Shiju Koothupalakkal and Sumeet Bagadia suggested buy or sell ideas for specific stocks. Sumeet Bagadia recommended buying Vedanta Ltd at ₹491.7 with a target of ₹515, while Shiju Koothupalakkal suggested buying UCO Bank at ₹56.55 with a target of ₹60 and Madras Fertilizers Ltd at ₹91.40 with a target of ₹96.
Investors are advised to conduct their own research and consult with certified experts before making any investment decisions. The Indian stock market continues to show resilience and potential for growth, despite the cautious trading environment.
