Sensex, Nifty end flat after a choppy session; Adani stocks shine; Jyothi Labs jumps 20%

Domestic equity markets settled flat, almost unchanged on Tuesday after a volatile trading session. Selling pressure in select heavyweights was offset by buying interest in metal and auto counters. Traders are keenly awaiting the US Fed's monetary policy outcome due on Wednesday.

For the day, the 30-share pack BSE Sensex fell only 29.07 points, or 0.04 per cent, to settle at 66,355.71, while NSE's Nifty50 added 8.25 points, or 0.04 per cent, to end the day at 19,680.60. Broader markets outperformed the headline peers as BSE midcap and smallcap indices settled in green. Fear gauge India VIX plunged sharply, falling over 12 per cent, to 10.24-levels.

Today, the market was flat as heavyweights like ITC followed the demerger news and had a negative impact on the index. However, China’s stimulus announcement helped to limit the negative impact and helped the metal stocks gain. The market will be full of volatility on account of tomorrow's Fed meeting and ongoing earning season, said Riches Vanara, Technical And Derivatives Analyst at Stoxbox.

"Today Nifty saw a muted opening for the day, and continued to slide on the negative slope to mark the third new low in the throwback rally from the highs of 19,991. However, on anticipated lines, the index found modest buying interest from the support zone of 19,650-19,600 and saw mild shorts recovering from the day low of 19,615. We anticipate the index to attract bullish momentum provided the support zone remains intact on a closing basis," he said.

Adani Group stocks were in the focus for the day. Adani Green Energy surged 10 per cent, while Adani Power was up 9 per cent for the day. Adani Transmission gained 7 per cent, while Adani Total Gas, ACC and Adani Wilmar rose 5 per cent each. Ambuja Cement gained over 4 per cent, while Adani Enterprises and Adani Ports settled 2 per cent higher, each.

On a sectoral front, the Nifty metal pack soared about 3 per cent, followed by the Nifty media index which gained about 2 per cent. The Nifty consumer durable, oil & gas and auto indices added about a per cent each. The Nifty PSU Bank topped among the losers, falling more than a per cent, while the Nifty FMCG index shed about a per cent each.

In the Nifty 50 pack, Hindalco surged 4 per cent, while JSW Steel and Tata Steel gained over 3 per cent each. Ultratech Cement, NTPC, Tata Motors, and Titan Company gained 2 per cent each. Power Grid and Mahindra & Mahindra were other key gainers on the index.

Among the laggards, Asian Paints plunged more than 4 per cent, followed by ITC and Larsen & Toubro declined 2 per cent each. Britannia Industries, Kotak Mahindra Bank, State Bank of India, SBI Life Insurance Company, IndusInd Bank and Axis Bank were down a per cent each for the day.

Indian indices hovered along the flat line, waiting ahead for the crucial decision of Fed policy. Metal stocks rose due to China's commitment to provide policy support to its realty sector, while utilities were up in anticipation of demand & improvement in operating margin, said Vinod Nair, Head of Research at Geojit Financial Services.

"The recent correction of the domestic market can be attributed to several factors, including muted start to Q1 results, a reversal in FII activity, a rising dollar index, and an increase in crude oil prices," he added.

A total of 3,680 shares were traded on BSE on Tuesday, of which 1,808 settled with cuts. 1,731 stocks ended the session with gains while 141 shares remained unchanged. A total of 11 shares hit their upper circuit, whereas 6 shares tested the lower circuit levels for the day.

In the broader markets, Jyothi Labs hit an upper circuit of 20 per cent after its profits doubled in Q1FY24. Thermax and Motherson Sumi Wiring India gained 7 per cent each. Zee Entertainment Enterprises, Ajanta Pharma and TVS Motor Company ended 6 per cent up each.

Among the losers, Chennai Petroleum Corporation and Olectra Greentech plunged about 9 per cent, each following muted Q1 earnings, while D-Link India and DCM Shriram Industries were down 8 per cent, each. Sharda Cropchem was down 7 per cent and Mangalore Refinery and Petrochemical were down 6 per cent each.

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