Benchmark indices’ winning streak ended on Wednesday, 10 July due to corrections in auto, banking, IT, & metal stocks. Sensex fell 427 points to 79,924, and Nifty dropped 109 points to 24,324. Earlier, Sensex hit a record high of 80,481, and Nifty had peaked at 24,461. The decline was primarily led by a correction in M&M shares.

The market capital of BSE-listed firms slumped to Rs 450.08 lakh crore. 

M&M, Tata Steel, TCS, HCL Tech, SBI, and JSW Steel were the top Sensex losers, whereas Asian Paints, PowerGrid, NTPC, HUL, and Sun Pharma were the top Sensex gainers. M&M shares fell 6.62% after the carmaker announced a price cut for XUV700.

The Market saw a profit-booking session ahead of the earnings season, with muted expectations due to slow sales growth and high inflation. There is a temporary risk from high budget expectations, which influenced the recent rally. Broader indices lagged behind large caps and FMCG, which are expected to drive future momentum due to a stable business outlook.

BSE auto index dropped by 971 points, while the banking index fell short by 387 points. The BSE IT index declined by 380 points & Metal Index fell by about 584 points.

Market breadth was negative, with 1363 stocks rising and 2576 stocks falling on BSE; 82 shares remained unchanged. Prashanth Tapse from Mehta Equities attributed the profit-booking to stretched valuations in Indian equities after weeks of new highs.

Sectoral stocks have risen sharply ahead of fundamentals, with upcoming earnings expected to justify these gains. Investors are adjusting portfolios ahead of the Budget and reducing exposure to risky stocks.

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