Mumbai, Jun 6 (PTI) The BSE Sensex and Nifty ended marginally higher on Tuesday in a volatile session driven by buying in auto, industrial and commodity stocks.
Traders said investors also preferred to remain on the sidelines ahead of the Reserve Bank of India’s interest rate decision later this week.
After a see-saw session, the 30-share BSE Sensex ended marginally higher at 62,792.88, up 5.41 points or 0.01 per cent. It touched a high of 62,867.95 and a low of 62,554.21 in the day’s trade.
The NSE Nifty closed at 18,599, up 5.15 points or 0.03 per cent.
“Markets remained volatile and ended almost unchanged amid mixed signals. After a flat start, the Nifty moved further down as the day progressed. However, the sharp recovery in the last half an hour more than compensated for all the losses. Eventually, the Nifty came close to the day’s high of 18,599.
UltraTech Cement was the top gainer in the Sensex chart, rising 3.13 per cent, followed by Kotak Mahindra Bank, Tata Motors, Axis Bank, Maruti, Bajaj Finserv, Bajaj Finance and Mahindra & Mahindra.
In contrast, Infosys, Tech Mahindra, Tata Consultancy Services, Wipro, Bharti Airtel, HCL Technologies, ICICI Bank and Nestle were the laggards.
While markets closed flat ahead of RBI’s MPC meeting later this week, buying was seen in rate-sensitive stocks like banking, auto and realty. Shrikant Chauhan, head of equity research (retail), Kotak Securities Ltd., said: “With expectations rising that the central bank may once again hold off on rate hikes, anticipation of stable interest rates going forward boosted rate-sensitivity.” Gave.
In the broader market, the BSE Smallcap gauge climbed 0.42 per cent and the Midcap index advanced 0.29 per cent.
The indices fell in IT 1.66 per cent, tech (1.51 per cent), metals (0.45 per cent), oil and gas (0.08 per cent) and FMCG (0.02 per cent).
Realty rose 1.25 per cent, auto 1.10 per cent, commodities (0.74 per cent), capital goods (0.61 per cent) and healthcare (0.59 per cent).
“Indian IT stocks posted their biggest decline in seven weeks after US-based peer EPAM Systems cut its revenue growth forecast,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Global stock markets were mostly lower on Tuesday after Wall Street fell, Jasani said, adding that the US economy could weaken following a report that growth in service industries is slowing.
In Asian markets, Tokyo ended in the green, while Shanghai and Hong Kong closed lower.
Europe’s stock markets were trading in negative territory. US markets closed down on Monday.
“The domestic market experienced profit-booking due to selling pressure in IT sector. IT stocks saw a decline on hopes of further cut in spending. However, a rally in autos and banks helped offset losses.
“Going forward this will be a key influencing factor,” said Vinod Nair, Head of Research, Geojit Financial Services, commenting on the growth and inflation forecasts by the RBI after the MPC meeting.
Global oil benchmark Brent crude fell 1.84 per cent to $75.33 a barrel.
Foreign institutional investors (FIIs) offloaded equities worth Rs 700.98 crore on Monday, according to exchange data.
“Indian equities are facing a struggle at higher levels. FIIs have also been selling since last 3 days, which has put a check on the rally. With RBI’s policy outcome now coming closer, we expect the market to remain cautious in the near term, as the action is shifting to interest-sensitive sectors,” said Siddharth Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd. Said. PTI Sum Sum Bal Bal
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