Benchmark indices closed flat on Tuesday amid volatility.
Market snapped the three-day winning run, opening on a weak note amid weak global cues. Indices closed flat amid volatility, dragged by consumer durables and bank stocks.
The BSE Sensex closed at 53,177.45, up 16.17 points or 0.03 per cent. It recorded an intraday high of 53,301.40 and a low of 52,771.53. The Nifty 50 closed at 15,850.20, up 18.15 points or 0.11 per cent. It recorded an intraday high of 15,892.10 and a low of 15,710.15.
Breadth remains positive
The market breadth remained positive with 1,793 stocks advancing on the BSE as against 1,486 that declined while 136 remained unchanged. Furthermore, 18 stocks hit the upper circuit as compared to the two stocks that were locked in the lower circuit. Besides, 67 stocks touched a 52-week high level and 43 touched a 52-week low.
Investors remained concerned as oil prices rebounded. Further, the rupee hitting new lows added to the negative market sentiment.
Vinod Nair, Head of Research at Geojit Financial Services said, “After a gap down opening, domestic indices were lifted by positive global peers while oil prices rose over renewed supply concerns.”
“The weakened rupee and rising bond yield limited domestic investors’ risk appetite. Gains in commodity-linked stocks and optimism over easing Covid restrictions in China aided the global up-move,” added Nair.
According to S Ranganathan, Head of Research at LKP securities, “While the confluence of factors like war, oil and currency strength of India tempted FII’s to book profits on the back of premium valuations relative to its peers, the narrative could likely change if any of the above factors were to alter going forward.”
“As the rupee hit fresh lows today, we did see selective buying interest in exporting companies as smart investors begin bargain hunting by putting global macro worries behind. In a rather range-bound trading session today as deliberations of the GST council gets underway, Autos displayed strength yet again on the back of new launches ahead of their monthly numbers,” added Ranganathan.
ONGC, Hindalco, Coal India, M&M and Tech Mahindra were the top gainers on the Nifty 50 while Titan, Asian Paints, Bajaj Finserv, Divi’s Lab and Bajaj Finance were the top losers.
Oil & Gas, Auto, Metal in focus
On the sectoral front, a majority of indices closed in the green. While consumer durables and financials, barring PSU Bank faced pressure, oil & gas, auto and metals gained.
Nifty Oil & Gas was up over 2 per cent at closing while Nifty Metal was up 1.67 per cent. Nifty Auto closed over 1 per cent higher.
Meanwhile, Nifty Consumer Durables was down over 1 per cent. Nifty Bank and Nifty Private Bank were down 0.50 per cent and 0.73 per cent, respectively. Nifty Financial Services was down 0.59 per cent. Nifty PSU Bank, meanwhile, was up 0.46 per cent.
As for the broader indices, Nifty Midcap 50 was up 0.11 per cent at closing while Nifty Smallcap 50 was down 0.41 per cent. The S&P BSE Midcap was up 0.18 per cent and the S&P BSE Smallcap was up 0.24 per cent.
The volatility index rose 2.11 per cent to 21.45.