Sensex and Nifty 50 opened in the red on June 11 as the market experienced profit booking after last week's rally, according to market experts. Telecommunications and financial services stocks led the decline in Nifty, while power and construction stocks gained.
"Although the broader trend remains positive, some consolidation or a pullback move cannot be ruled out to cool off the overbought setups," said Ruchit Jain, Lead Research Analyst at 5paisa.
At 9.36 AM, the Sensex was down 116 points or 0.2 percent at 76,373 and the Nifty was down 25 points or 0.1 percent at 23,233. About 2,004 shares advanced, 936 shares declined, and 109 shares remained unchanged.
Jain noted that support for Nifty 50 is in the range of 23,000-22,850, with resistance around 23,500 followed by 23,900.
Excluding Nifty Bank and Nifty Private Bank which declined 0.2 percent, the remaining 11 sectoral indices were in the green.
When it comes to individual stocks, L&T, ONGC, and M&M contributed positively to Nifty as they gained 1-3 percent. ONGC shares jumped over 3 percent after international brokerage Jefferies retained its buy call on ONGC, noting that the central government's policy continuity should keep the oil PSU's profitability elevated.
Meanwhile, Bharti Airtel, HDFC Bank, and ICICI Bank were among the stocks to lead the decline in Nifty.
The broader market outperformed the benchmarks, with both BSE Midcap and Smallcap indices gaining 0.5 percent.
The India VIX, which had spiked to 30 during the election phase, has calmed down to 16.
Despite the anticipated consolidation or profit booking following the recent rally, the overall market sentiment remains bullish. "The BJP retaining most of its previous ministerial seats signals policy continuity, which is positive for the market. Additionally, improved corporate earnings provide fundamental support," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The US Consumer Price Index report for May is set to be released on June 12, coinciding with the conclusion of the Fed's two-day policy meeting. The central bank is expected to keep interest rates unchanged. Investors will be closely watching for indications of when the US central bank might start reducing interest rates. Markets are currently pricing in just one rate cut this year, expected in November, according to the CME FedWatch Tool.
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