Sensex and Nifty reversed early gains and closed a tad lower on Wednesday amid weak global cues. Global markets were muted today as investors were cautious amid a resurgence in COVID-19 infections across the world and European cities announcing new restrictions to curb the pandemic from spreading.
Extending fall for the fifth consecutive session, Sensex ended 65 points lower at 37,668 and Nifty declined 21 points to 11,131. Yesterday, BSE 30-share benchmark Sensex ended 300 points lower at 37,734 and NSE Nifty 50 fell 96 points to 11,153.
Bharti Airtel, Tata Steel, PowerGrid, NTPC, ONGC, TCS and Bajaj Auto were among the laggards on Sensex. On the other hand, Infosys, HCL Tech, Asian Paints, Kotak Bank, Titan and HDFC Bank were among gainers. Sectorally, gains in private banking, financials, realty, FMCG were capped by losses in media, pharma, PSU Banks, metal and IT indices.
Investor sentiments in global markets was dented amid rising coronavirus cases that led to the possibility of fresh lockdowns, further slowing the pace of global economic recovery.
Vinod Nair, Head of Research at Geojit Financial Services said," The re-emergence of virus infections around the world has put doubts on the global economic recovery, and the positivity in the global markets was led by technology shares."
Overseas, Australian markets were leading the gainers, while most Asian markets closed marginally higher. Wall Street stocks closed higher yesterday as comments from Fed Chairman regarding the state of the economy kept sentiments upbeat. However, a delay in new US fiscal stimulus by Congress and an increase in the number of coronavirus cases kept gains checked.
On Nifty's near-term outlook, -Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The markets reached close to 11000 but was swift to bounce back. However, the target of 10900-11000 is still open and we could very well achieve it. 11600-11650 is the resistance level and hence any rally up can be utilised to go short on the Nifty."
For tomorrow's trade, Ajit Mishra, VP - Research, Religare Broking said," We expect volatility to remain high on Thursday as well, thanks to the scheduled derivatives expiry of September month contracts. Indications are in the favour of some respite but sustainability would be key. In the present scenario, we feel it's more prudent to focus on the accumulation of quality stocks on dips."
On the currency front, Indian rupee too ended flat, rising by one paisa at 73.57 per dollar today, as investors turned cautious amid weak domestic equities.
Worldwide, there were 317 lakh confirmed cases and 9.75 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 0.90 lakh and total coronavirus cases stood at 56.46 lakh as of Wednesday.
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