Sectorally, gains in FMCG, realty, auto, IT, media and metal index were capped by losses in PSU Banking, financial, private banking and pharma index
Amid high volatility, market indices ended flat with a positive bias on Tuesday, tracking tepid cues from European and Asian equities. Traders said concerns over the return of lockdown situation in a few states also hurt market sentiment
Reversing from 5 days of fall, Sensex ended 7 points higher at 49,751 and Nifty gained 32 points to end at 14,707. Yesterday, Sensex ended 1,145 points lower at 49,744 and Nifty lost 306 points to 14,675.
ONGC, Tata Steel, Tata Motors, Hindalco, UltraTech Cement, SBI, Sun Pharma, UPL traded as top gainers. On the other hand, Kotak Bank, Maruti, Bajaj Auto, HDFC Bank and HCL Tech were among the laggards. Sectorally, gains in FMCG, realty, auto, IT, media and metal index were capped by losses in PSU Banking, financial, private banking and pharma index.
The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 1.13%. The S&P BSE Small-Cap index gained 0.89%. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 0.95 per cent to 25.22. BSE's market capitalisation stood at Rs 201 lakh crore in today's session.
Market breadth was positive with 1,690 shares rising and 1,232 shares falling and 159 shares remaining unchanged.
Vinod Nair, Head of Research at Geojit Financial Services said,"Domestic market got back on its feet during the morning trade supported by strong Asian market while negative waves from European peers outweighed the gains by the end of the day. The expectation of strong global recovery as prompted by rising international commodity prices helped the market but was tempered due to elevated bond yield & virus cases. Consequently, volatility has increased in the domestic front, but broad markets continue to be attracted with themes like Mid & Small caps, cyclical, energy, PSUs, Metals and Industries."
Ajit Mishra, VP - Research, Religare Broking said, "Markets drifted lower for the fourth successive session and lost nearly a percent, tracking unsupportive global cues. After a weak start, the benchmark indices tried to recovery but profit-taking in banking, auto, metal and healthcare majors gradually pushed the index southward. Consequently, the Nifty index settled below 15,000 and we had a similar trend on the sectoral front."
Asian markets ended higher on Tuesday, as their counterparts declined overnight on Wall Street. European markets also opened in red today amid cautious trade in global markets as investors focused on the developments surrounding the pandemic and vaccine rollout.
In the US, the S&P 500 and Nasdaq closed lower on Monday as climbing Treasury yields and prospects of rising inflation triggered valuation concerns. Investors also await cues from Federal Reserve Chairman Jerome Powell, who delivers his semi-annual testimony on the economy before the Senate Banking Committee on Tuesday.
He added,"Nifty has critical support at 14,800 and a decisive break may result in further fall else consolidation will continue. We reiterate our cautious stance and suggest focusing more on position management during the corrective phase. Further, volatility is likely to remain high across the board. Traders should align their positions accordingly and limit leveraged positions."
Expressing views on Nifty technicals, Rohit Singre, Senior Technical Analyst at LKP Securities said,"Index managed to hold above 14700 zone and closed a day with small gains forming a Doji candle pattern on the daily chart after consecutive five bearish candle. The index has good support near 14630 zone and immediate resistance is coming near 14800 zone so index may show some sort of consolidation in the same range and final direction will be clear once we see either side breakout from the mentioned range".
In the foreign exchange market, the partially convertible rupee rose 3 paise to settle at 72.46 per US dollar, compared with its previous closing of 72.49.