Sensex, Nifty end flat after volatile trade; BHEL rallies 12%, Sigachi tanks 12%

Domestic equity markets kicked off the week on a volatile note but finally ended flat, or marginally higher. The buying in oil & gas and financials was offset buy selling pressure in IT, auto and FMCG counters. Traders are looking for global cues amid the rising caution in the broader markets.

For the day, BSE's Sesnex added 66.14 points, or 0.09 per cent, to settle at 73,872.29. NSE's Nifty50 index advanced 27.20 points, or 0.12 per cent, to end the session 22,405.60. Broader markets were mixed as the BSE midcap index rose 0.16 per cent, while the BSE smallcap index shed three-four a per cent. Fear gauge India VIX eased half a per cent to 14.92-levels.

On a sectoral front, the Nifty media index was the biggest laggard, falling 1.85 per cent, while the Nifty IT index shed 0.75 per cent for the day. The Nifty auto and FMCG indices declined about half a per cent each. The Nifty oil & gas indices was up 1.85 per cent, while the Nifty private bank and financial services indices were other key gainers for the day.

Markets started the week on a muted note and ended almost unchanged, taking a breather after the recent surge. Nifty hovered in a narrow range till the end and finally closed at 22,405.60 levels. A mixed trend on the sectoral front kept the traders occupied wherein energy, pharma and banking edged higher while IT, FMCG and auto closed in the red, said Ajit Mishra, SVP - Technical Research at Religare Broking.

"It is a healthy pause after the recent surge and participants should continue with a 'buy on dips' approach. We reiterate our view to focus on banking for momentum while others would continue to play a supporting role on a rotational basis," he said.

In the Nifty50 pack, NTPC surged more than 3.7 per cent, while the HDFC Life Insurance and Power gainer rose 2.8 per cent and 2.7 per cent respectively. ONGC and Bharat Petroleum were other key gainers for the day. Among the laggards, Eicher Motors dropped about 2.7 per cent, while JSW Steel declined 2.24 per cent. SBI Life and Mahindra & Mahindra also dropped 2 per cent each.

The market traded in a range-bound manner due to weak global cues, while investors turned stock-specific due to the prevailing caution on broader indices. Further, the tepid consumption data influenced investors to refrain from FMCG and discretionary stocks, said Vinod Nair, Head of Research, Geojit Financial Services.

"The global sentiment is likely to be cautious ahead of FED chair testimony and ECB policy later this week. Since inflation is above the target range, the FED is expected to keep its hawkish stance on interest rates and will be watchful of unemployment and nonfarm payroll data for more cues," he said.

A total of 4,085 shares were traded on BSE on Monday, of which 2,523 settled with cuts. 1,430 stocks ended the session with gains while 132 shares remained unchanged. During the day, 370 shares hit their upper circuit, whereas 281 shares tested the lower circuit levels for the day.

In the broader markets, BHEL surged more than 12 per cent, while TD Power Systems rallied about 11 per cent. SMS Pharmaceuticals jumped nearly 10 per cent, while Shalimar Paints and Mangalam Cement rose 9 per cent each. ISGEC Heavy Engineering and Monte Carlo Fashions added 8 per cent each.

Among the laggards, Sigachi Industries crashed over 13 per cent, while Gensol Engineering hit the lower circuit of 10 per cent. Kalyani Streels was down 9 per cent at the close, while Sanghvi Movers and Rainbow Children's Medicare ended 8 per cent lower each for the day.