Market ended on a flat note for the second consecutive day. After plunging over half a per cent in the first half, benchmark indices rebounded in the closing hours, led by a sharp recovery in Reliance Industries, metals and PSU bank stocks.

However, IT stocks, HDFC logged losses due to profit taking.

The BSE Sensex closed at 51,849.48, down 85.40 points or 0.16 per cent. It hit an intraday high of 51,913.92 and a low of 51,450.58. Nifty 50 closed at 15,576.20, up 1.35 points or 0.01 per cent near the day’s high of 15,597.45. It hit an intraday low of 15,459.85.

Reliance jumps on AGM expectations

Reliance Industries, which gained 1.52 per cent to close at ₹2,201.30, lifted the Sensex by 98 points. The company has fixed the record date for final dividend on June 14. The dividend, if declared at the AGM, will pe paid within week of conclusion of AGM, the company said. RIL's 44th AGM will be held on June 24. Marketmen also expect some big announcements from the company on the AGM with regard to Jio, 5G plans and Retail.

Breadth turns positive

The breadth of the market turned positive with 2,139 stocks advancing, 974 declining and 171 remaining unchanged on the BSE. As many as 462 securities hit the upper circuit and 184 the lower circuit; 305 hit their 52-week high while 32 touched a 52-week low.

Binod Modi, Head Strategy at Reliance Securities, said, “Benchmark index Nifty corrected marginally as profit booking in financials especially in private banks dragged index. In addition to private banks, IT and FMCG stocks also witnessed selling pressure. Notably, PSU banks witnessed sharp rebound today mainly led by increased visibility of fund raising by PSU banks in coming months. Further, auto and metal stocks also witnessed sharp recovery.”

UPL, Tata Steel, Hindalco. JSW Steel and Reliance were the top gainers on the Nifty 50 while ITC, Tech Mahindra, Axis Bank, Asian Paints and HDFC were the top laggards.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Ahead of the (RBI) MPC policy, domestic market continued its volatility with a mixed bias. Selling was witnessed in Financials, IT and FMCG stocks but it reduced towards the close of trading. Weakness across US and Asian markets also added to the negative trend.”

“PSU banks attracted buyers in hopes that the government will soon finalise the list for privatisation. In the policy, RBI is expected to focus on economic growth by maintaining the status quo on policy rates and ensuring liquidity while keeping an eye on the inflationary pressure due to rising commodity prices," added Nair.

Metals shine, IT FMCG under pressure

On the sectoral front, all indices except Nifty IT, Nifty FMCG and Nifty Financial Services closed in green.

Nifty IT witnessed the highest losses and was down 0.75 per cent. Nifty FMCG was down 0.52 per cent while Nifty Financial Services was down 0.15 per cent.

Meanwhile, metals and PSU Bank stocks rebounded sharply. Nifty Metal was up 2.18 per cent while Nifty PSU Bank was up 3.03 per cent. Nifty Auto also gained and ended 1.82 per cent higher.

Midcap, smallcap stocks rebound sharply

Midcap and smallcap stocks witnessed sharp recovery and outperformed the benchmarks. All broader indices closed in the green.

Nifty Midcap 50 was up 1.62 per cent while Nifty Smallcap 50 was up 1.13 per cent. The S&P BSE Midcap was up 1.75 per cent while the S&P BSE Smallcap was up 1.29 per cent.

The volatility index softened 1.02 per cent to 17.21.

“Moreover, strong buying was seen in midcap and smallcap stocks as improved earnings visibility led by gradual withdrawal of state level lockdowns attracted investors to this space,” said Modi.

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