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Benchmark indices ended flat on Wednesday after witnessing record highs during early trade.
Market, opening on a positive note tracking global cues, remained volatile through the day, ahead of the F&O (futures and options) expiry on the NSE on Thursday. Indices were dragged by losses in financials and consumer durables. Oil and gas stocks remained in focus during the day.
NSE inches close to acquiring NCDEX
The BSE Sensex, which surged to a record high of 56,198.13 during early trade, closed at 55,944.21, down 14.77 points or 0.03 per cent. It recorded an intraday low of 55,899.96. The Nifty 50, which recorded a fresh all-time high of 16,712.45, closed at 16,634.65, up 10.05 points or 0.06 per cent. It recorded an intraday low of 16,617.50.
Market breadth positive
The breadth of the market remained positive as 1,991 stocks advanced on the BSE, as compared to 1,214 stocks that declined while 105 remained unchanged. Further, 443 stocks hit the upper circuit as compared to the 233 stocks that were locked in the lower circuit; 150 stocks touched a 52-week high and 28 touched a 52-week low.
Deepak Jasani, Head of Retail Research, HDFC Securities, said that the advance-decline ratio ended above 1:1, raising hopes of broader market recovery. However, lower-than-average volumes reflect the hesitation of participants to enlarge their commitment on either side, he added.
Near-term outlook bullish for Sensex, Nifty
Binod Modi, Head Strategy at Reliance Securities, said, “Domestic equities traded range-bound today, ahead of F&O expiry. Barring IT, metal and FMCG, most sectoral indices turned red toward the final session of the day. However, small-cap stocks were in focus today, with strong buying seen in quality names.
“Additionally, investors remained upbeat on IT stocks in the backdrop of sustained earnings visibility. Further, investors seem to be lapping up FMCG stocks today.”
Adani Ports, HDFC Life, Hindalco, ONGC and Coal India were the top gainers on the Nifty 50 while Bajaj Finserv, Titan, Maruti, Bharti Airtel and Dr Reddy’s were the top losers.
Oil and gas stocks in focus
On the sectoral front, oil and gas, metals, IT and FMCG extended gains, while financials, pharma, realty and consumer durables faced profit-taking.
Nifty Oil & Gas was up 1.12 per cent at closing while Nifty Metal was up 0.54 per cent. Nifty IT was up 0.73 per cent while Nifty FMCG was up 0.56 per cent.
Meanwhile, Nifty Bank and Nifty Financial Services were down 0.35 per cent and 0.33 per cent, respectively. Nifty Consumer Durables was down 1.49 per cent. Nifty Realty was down 0.78 per cent. Nifty Pharma and Nifty Healthcare Index were down 0.33 per cent each.
“Some buying interest is seen in select oil and gas, metals, IT and FMCG stocks while some pressure is seen in pharma, realty and auto stocks. Shares of sugar companies climbed after the Cabinet hiked FRP [fair and remunerative price] for sugarcane,” said Mohit Nigam, Head — PMS, Hem Securities.
Broader indices
In the broader market, smallcaps outperformed the benchmarks.
Nifty Midcap 50 was down 0.08 per cent at closing while Nifty Smallcap 50 was up 0.70 per cent.
The S&P BSE Midcap was up 0.58 per cent while the S&P BSE Smallcap was up 0.68 per cent.
The volatility index rose 2.35 per cent to 13.50.
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