Fag-end fall keeps trading flat
Sensex, Nifty pare early gains as positive sentiment couldn’t sustain due to lacklustre economic data from Europe; Power, banking shares decline
Mumbai Benchmark equity indices Sensex and Nifty retreated from early highs to close on a flat note on Wednesday due to fag-end selling in banking and power shares amid mixed global cues. The 30-share BSE Sensex ended 0.02 per cent or 11.43 points higher at 65,087.25 points, marking its third straight day of gains. Similar trends were witnessed on the NSE where the broader 50-share Nifty inched up 0.02 per cent or 4.80 points to settle at 19,347.45 points.
Most of the European stocks were trading in the negative territory while Asian shares ended the day on a mixed note.
“European stocks fell after the latest round of price data suggested inflation may not yet be fully on the retreat in the euro region. Asian markets too gave up some of their morning gains,” said Deepak Jasani, head (retail research), HDFC Securities.
Vinod Nair, head (research) at Geojit Financial Services, adds that “positive sentiment initially propelled domestic equities, buoyed by softer US labour market data that caused a retreat in US bond yields, alleviating concerns about rate hikes.”
“Markets traded volatile and ended almost unchanged amid mixed cues. After the gap-up start, the Nifty oscillated in a narrow band and selling pressure in the final hours trimmed all the gains,” said Ajit Mishra, SV-P (technical research), Religare Broking Ltd.
“This positive outlook was reinforced by Chinese banks’ move to reduce existing mortgage rates, favourably impacting Indian metal stocks. However, gains were tempered as the day progressed, primarily due to weakness in global markets attributed to lackluster economic data from Europe. Banking stocks bore the brunt of this downturn, while mid- and small-cap segments displayed resilience amid the market dynamics,” further added Nair.
Foreign Portfolio Investors (FPIs) were the net buyers, purchasing shares worth Rs61.51 crore, as per BSE data.
A mixed trend continued on the sectoral front wherein metal and realty posted decent gains, while energy and banking remained subdued. In the broader market, BSE Midcap index rose by 0.55 per cent while the smallcap index spurted by 0.83per cent.
In the Sensex pack, majority of the shares closed in the positive territory.