Domestic equity indices settled flat on Tuesday, almost unchanged from its previous close. Bulls attempted to take the charge, but the fag-end selling in the index heavyweight sectors erased entire day's gains. Going forward, global cues will direct the markets in the near term.
For the day, the 30-share pack BSE Sensex inched 3.94 points, or 0.01 per cent, up to settle at 65,220.03, while NSE's Nifty added only 2.85 points, or 0.01 per cent, to end the day at 19,396.45. Broader markets outperformed the headline indices as BSE midcap and smallcap indices added a per cent each. Fear gauge India VIX dropped about 2 per cent to 11.75-levels.
Market ended flat with a positive bias in an extremely lacklustre trading session, as traders preferred to stay on the sidelines after the choppy trades over the past week or so. Despite the range-bound session, buying activity was seen in power and capital goods stocks, while IT stocks failed to deliver, despite a rise in the Nasdaq, said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
"On the technical front, the market is witnessing a non-directional activity on the higher side and finding resistance near 19450, while on the lower side the index is regularly taking support near 19375. Any fresh uptrend is possible only after the dismissal of 19450, and above the same the index could rally till 19500-19525. On the flip side, the dismissal of 19375 could accelerate the selling pressure and the index could slip till 19325-19300," he said.
On a sectoral front, the Nifty metal, FMCG and consumer durable indices added about a per cent each. The Nifty auto and media indices were also among the top gainers for the day. However, heavyweight sectors including financial services, IT and pharma weighed on the markets. The markets started the day on a flat note and due to lack of market participation, the Index remained range bound throughout the day. On sector-wise performance, metal and FMCG were the top performers; on the flip, Pharma and PSU Banks were the laggards, said Aditya Gaggar, Director at Progressive Shares. "By forming a bearish candle, Nifty50 stuck in the range of 19,300-19,470." In the Nifty50 pack, Adani Enterprises surged more than 2 per cent, while HDFC Life Insurance was second among the gainers with a similar rise. ITC and NTPC gained more than a per cent each, Hero MotoCorp, Mahindra & Mahindra, Wipro, SBI Life Insurance Company and Larsen & Toubro were among the leading gainers. Among the laggards, Jio Financial Services hit a lower circuit of 5 per cent even on the second trading session. Bharat Petroleum and Cipla dropped over a per cent each. Eicher Motors, Bajaj Finserv, State Bank of India, Tata Consultancy Services, HDFC Bank and ICICI Bank also weighed on the market sentiments. Despite the support of positive international markets, Indian equities struggled to maintain their upward momentum due to lingering apprehensions over ongoing global uncertainties, said Vinod Nair, Head of Research at Geojit Financial Services. "Sectors closely tied to the Western economy, such as IT and pharma, faced challenges, while domestic-oriented sectors, alongside mid- and small-caps, exhibited resilience and gained traction. The influence of higher bond yields and concerns about potential rate hikes in the US is prompting FIIs to withdraw funds from the domestic market, contributing to the market's volatility," he added. A total of 3,907 shares were traded on BSE on Monday, of which 2,097 settled higher. 1,623 stocks ended the session with cuts while 1187 shares remained unchanged. A total of 19 shares hit their upper circuit, whereas only three shares tested the lower circuit levels for the day.