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Market ended their rally as benchmark indices ended on a flat note, dragged by metals and financials.
The BSE Sensex which is just 100 points away from an all-time high, closed at 52,275.57, down 52.94 points or 0.10 per cent. It hit an intraday high of 52,432.43 and a low of 52,135.04.
Nifty 50 closed at 15,740.10, down 11.55 points or 0.07 per cent. It recorded a fresh all-time high of 15,778.80 and an intraday low of 15,680.00.
The breadth of the market remained positive with 1,837 stocks advancing, 1,366 declining and 141 remaining unchanged on the BSE. As many as 595 securities hit the upper circuit and 157 the lower circuit; 548 hit their 52-week high while 26 touched a 52-week low.
Binod Modi, Head Strategy at Reliance Securities. said, “Benchmark Nifty ended almost flat in a choppy trading day with mixed reactions were seen across the counters. Further, weak Asian markets’ cues also weighed on sentiments.”
Tata Motors, Tech Mahindra, Bharti Airtel and IOC were the top gainers on the Nifty 50 while Hindalco, Tata Steel, JSW Steel, Kotak Bank and HDFC were the top laggards.
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said, “Indian equity benchmarks traded marginally in red in morning deals and extended the same in afternoon session. Traders were seen piling up positions in IT and Telecom sectors while selling was witnessed in Metal, banks and PSU stocks.”
“Traders are uneasy about high valuations and rising global inflation ahead of central bank meetings. Investors await key US inflation data due on Thursday for more indications about the Fed's policy outlook and cues about the global economic recovery. The coronavirus infection rate in the region is also keeping the underlying mood cautious,” added Rathi.
Sectoral and broader indices
On the sectoral front, metals and financials remained under pressure. The Nifty Metal index was down 1.06 per cent. Nifty Bank and Nifty Financial Services were down 1.01 per cent and 0.76 per cent respectively. Nifty Private Bank and Nifty PSU Bank were down by 0.98 per cent and 1.45 per cent, respectively.
However, IT stocks remained in focus with Nifty IT up 1.20 per cent. FMCG and Pharma stocks also gained. Nifty FMCG was up 0.84 per cent while Nifty Pharma was up 0.86 per cent. Nifty Realty was up 0.85 per cent.
On the BSE, power stocks gained during the morning session. The BSE Power index hit a fresh 52-week high of 3007.72.
As for broader indices, the Nifty Midcap 50 closed 0.11 per cent higher. Smallcap stocks managed to retain gains with Nifty Smallcap 50 trading 0.66 per cent higher. The S&P BSE Midcap was up 0.38 per cent while the S&P BSE Smallcap was up 0.93 per cent.
The volatility index softened 2.20 per cent to 15.23.
“While financials and metals witnessed selling pressure, IT, FMCG and Pharma supported index. However, midcap and smallcap indices continued to outperform broad index as improved prospects of earnings recovery continues to attract investors towards this space,” said Modi.
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