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The Sensex and Nifty ended little changed on Thursday, as gains in IT companies such as Infosys Ltd helped offset declines in financial firms, while bonds fell after oil prices hit a two-year high.
The benchmark BSE index closed up 26.53 points or 0.08 per cent at 33,588.08, while the broader NSE index ended 6.45 points or 0.06 per cent higher at 10,348.75.
The benchmark 10-year bond fell, with the yield up 3 basis points to 6.99 percent from its close on Wednesday after earlier rising as much as 6 bps.
Relentless buying by domestic institutional investors came against the background of a moderate recovery in the rupee.
Among BSE sectoral indices, IT index gained the most by 1.3 per cent, followed by TECK 0.84 per cent, capital goods 0.45 per cent and consumer durables 0.43 per cent. On the other hand, metal index was down 0.34 per cent, auto 0.23 per cent and infrastructure 0.17 per cent.
Top five Sensex gainers were Infosys (+2.6%), Sun Pharma (+1.78%), Reliance (+1.6%), PowerGrid (+1.04%) and Axis Bank (+0.78%), while the major losers were Dr Reddy's (-2.1%), Adani Ports (-1.65%), Bajaj Auto (-1.52%), Asian Paints (-1.12%) and NTPC (-0.94%).
Analysts said the market was consolidating for want of fresh triggers, after the earnings season wound down, having hit record levels earlier this month.
Meanwhile, a rally in oil prices has continued to reduce expectations of rate cuts ahead of the central bank's policy meeting early next month.
“There aren't many domestic factors driving the markets. The inflow is mostly from domestic investors,” said Sangeeth V, institutional relationship manager at Paterson Securities.
NSE faces resistance near 10,400
On chart, as per Fibonacci projection levels, the NSE index faces a strong resistance near 10,400, the 38.2 per cent projection of the uptrend from September 28 low of 9687.55 to November 6 high of 10,490.45.
Meanwhile, the benchmark 10-year bond yield was up 5 bps to 7.01 per cent from Wednesday's close after rising to as high as 7.02 per cent.
IT stocks were among the major gainers, with I nfosys Ltd rising as much as 2.9 per cent. Over half a million Infosys shares changed hands in block deals on the NSE.
Moves in Asian share markets were minor with Japanese markets closed for a holiday and the United States off for Thanksgiving.
MSCI's broadest index of Asia-Pacific shares outside Japan eked out a fresh 10-year peak with a rise of 0.15 per cent, as did Hong Kong's main index.
(With inputs from Agencies)
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