Sensex, Nifty pare gains to end flat; banks outperform
Market turned volatile as investors were concerned over fall in rupee and surge in oil prices.
Sensex registered a positive opening on Tuesday and rose 181 points in the early session on buying by domestic institutional investors amid positive leads from Asian markets following overnight gains on the Wall Street.
However, it erased the gains owing to selling in IT, metal and auto stocks and slipped 72 points to touch the intraday low of 35,136. Eventually, the key index closed the day 8 points, or 0.02 per cent, up at 35,216, with 16 stocks rising, while 15 falling.
The Nifty50 ended the day almost flat, up by 2 points or 0.02 per cent at 10,718, with 25 stocks in the green and 25 in the red.
Market turned volatile as investors were concerned over movement of rupee and surge in oil prices, which could eventually lead to tight monetary policy. Still, banks outperformed, as sentiment improved on account of early recognition of stressed assets. Continued outflow of foreign money will keep rupee on tenterhook while increasing GST collection and RBIs open market operation may soften the volatility
-Vinod Nair, Head of Research, Geojit Financial Services
BSE Midcap and smallcap indices portrayed a contrasting image, closing 0.10 per cent down and 0.10 per cent up, respectively on Tuesday.
Market remained rangebound for most part of the session on restrained buying, as investors were cautiously watching surging crude oil prices and falling rupee. Moreover, market participants believe that the market may see some correction before Karnataka election.
Geopolitical development involving the US and Iran also kept investors a little nervous.
Despite uninspiring March earnings, ICICI Bank closed the day with a gain of nearly 7 per cent on hopes of improvement in asset quality. Jefferies, CLSA and Kotak Institutional Equities keep the rating at "buy" even after the lender reported its Q4 profit halved as bad loans surged, Reuters reported.
Graphite electrode major HEG closed the day with a tepid gain of 0.43 per cent after it reported on Tuesday a net profit of Rs 634.01 crore for the quarter ended March.
Shares of BEML surged 5 per cent on Tuesday after Tata AIG Life Insurance Company bought 2.90 lakh share of the company at Rs 1,061.76 each.
State Bank of India and Axis Bank clocked up gains of over 1 per cent.
On the contrary, Mahindra & Mahindra, IndusInd Bank and Larsen & Toubro remained the top Sensex losers of the day, falling up to 2.26 per cent.
After rallying 117 per cent in the past three sessions, PC Jeweller plunged 16 per cent on Tuesday. The jewellery firm is in news because of its alleged links with Vakrangee, which is under regulatory scanner, and a gift of shares by promoter Padam Chand Gupta to one of his family members.
Among the sectors, bank and realty climbed over 1 per cent, whereas capital goods, consumer durables and TECK declined nearly 1 per cent.
European stocks were mixed amid concerns that the US might impose fresh sanctions on Iran. However, major Asian markets closed the day with gains.