Sensex, Nifty end marginally weak amid volatility

Benchmark indices ended lower on Tuesday, dragged by metals.

The market opened on a positive note but oscillated between losses and gains till post noon. However, benchmarks extended losses during closing hours, dragged by metals and oil & gas stocks.

The BSE Sensex closed at 60,029.06, down 109.40 points or 0.18 per cent. It recorded an intraday high of 60,421.14 and a low of 59,881.75. The Nifty 50 closed at 17,888.95, down 40.70 points or 0.23 per cent. It recorded an intraday high of 18,012.25 and a low of 17,847.60.

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Breadth remains positive

The market breadth remained positive, with 1,961 stocks advancing on the BSE, 1,293 declining and 147 remaining unchanged. Furthermore, 361 stocks hit the upper circuit compared to the 186 stocks locked in the lower circuit. Besides, 184 stocks touched a 52-week high level, and 27 touched a 52-week low.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Succumbing to lacklustre global sentiments, domestic indices failed to gain ground oscillating between gains and losses in today’s rough session. Global markets remain jittery ahead of the upcoming Bank of England and Fed meetings where the central banks could cease the pandemic-era stimulus.

“Metal, oil and commodity stocks dragged, fuelled by profit booking while realty, PSU bank and consumer durables made frail attempts at lifting the indices. Auto sector managed to remain buoyant despite weak auto sales numbers reported by sectoral majors due to supply chain disruptions, fuel price hikes and rise in input costs."

Maruti, NTPC, Titan, State Bank of India and L&T were the top gainers on the Nifty 50, while Tata Steel, Grasim, Hindalco, JSW Steel and HCL Tech were the top laggards.

Metals lose shine

On the sectoral front, PSU Bank, realty, consumer durables and auto stocks gained while metals, oil & gas, pharma, healthcare and IT closed weak.

Nifty Realty was up 3.38 per cent at closing. Nifty PSU Bank was up 2.37 per cent, while Nifty Consumer Durables was up 0.91 per cent. Nifty Auto was up 0.88 per cent.

According to Binod Modi, Head Strategy at Reliance Securities, “An expectation of volume revival in coming months in the backdrop of festive demand and the possibility of ease in semiconductor shortage aided automobile stocks to see sharp rebound despite subpar Oct’21 sales volume reported especially in PVs and two-wheelers segments. Additionally, real estate stocks were in focus today led by sustained firm sales booking in Oct’21 across the pockets.”

Meanwhile, Nifty Metal was down 1.58 per cent. Nifty Pharma and Nifty Healthcare Index were down 0.40 per cent and 0.58 per cent, respectively. Nifty Oil & Gas was down 0.81 per cent. Nifty IT was down 0.32 per cent.

Broader indices

Midcaps and smallcaps outperformed the benchmarks.

Nifty Midcap 50 was up 0.96 per cent while Nifty Smallcap 50 was up 0. 94 per cent. The S&P BSE Midcap was up 0.55 per cent, while the S&P BSE Smallcap was up 1.11 per cent.

The volatility index softened 1 per cent to 17.06.

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