Sensex, Nifty give up gains to settle lower; Salasar Techno jumps 20%, Tejas Networks falls 6%

Domestic equity markets took a 'U-turn' during Saturday's special trading session and settled lower. Headline indices gave up early gains as the session progressed, bucking the positive global cues. Q3 earnings of blue-chips like Reliance, HUL, Kotak Mahindra Bank and ICICI Bank kept traders on tenterhooks. Indian stock markets will be observing a holiday on Monday.

For the day, BSE's Sensex dropped 259.59 points, or 0.36 per cent, to settle at 71,423.65. NSE's Nifty50 declined 50.60 points, or 0.23 per cent, to end the day at 21,571.80. Broader markets outperformed the headline peers as the BSE midcap and smallcap indices gained about half-a-per cent each. Fear gauge India VIX dropped more than a per cent to 13.72-mark.

Markets ended marginally lower in a dull session, ignoring favorable global cues. A mixed trend on the sectoral front kept the traders occupied wherein recovery in the banking and financial stocks was the key highlight. The continued buying in select midcap and smallcap counters further eased the pressure, said Ajit Mishra, SVP - Technical Research at Religare Broking.

"Indications are in favor of further consolidation in the index thus traders should maintain their focus on stock selection. All key sectors, barring banking, are still holding strong. However, earnings announcements are keeping volatility high so keep a check on aggressive positions and maintain a clear exit plan in place," he said.

On a sectoral front, the Nifty PSU Bank index gained about 2 per cent, while the Nifty private bank and financial services indices gained half to two-third per cent each as of the end of the session. The Nifty IT and FMCG dropped more than a per cent each, while the Nifty pharma and realty indices were other key laggards.

In the Nifty50 pack, Hindustan Unilever dropped over 3.7 per cent after a muted Q3 show, while Tata Consultancy Services and Mahindra & Mahindra shed about 2 per cent each. IndusInd Bank and HCL Tech were down 1.5 per cent each. Among the gainers, Coal India rose over 4 per cent, while Adani Ports rose 3.35 per cent. Kotak Mahindra Bank added 2.6 per cent for the day.

Amid rising optimism about AI, US markets surged over the weekend. However, domestic markets exhibited a subdued trend influenced by extended holidays, low volumes, and weekly option expiration, said Vinod Nair, Head of Research, Geojit Financial Services.

"Profit booking was noted in IT and FMCG, while private banks witnessed selective buying post the recent sharp correction and stable Q3 earnings. Next week, the interest rate decisions of the BoJ and ECB, along with US GDP data, are anticipated to drive the market dynamics," he said.

A total of 3,908 shares were traded on BSE on Saturday, of which 2,062 settled with gains. 1,752 stocks ended the session with cuts while 94 shares remained unchanged. During the day, 445 shares hit their upper circuit, whereas 218 shares tested the lower circuit levels for the day.

In the broader markets, state run companies including IFCI, Andrew Yule & Company and Salasar Techno Engineering hit an upper circuit of 20 per cent each. Rama Steel Tubes, Ircon International and Responsive Industries rose more than 16 per cent each. Railtel Corporation of India gained about 14 per cent for the day.

On the downside, Tejas Networks dropped more than 6 per cent after Q3 earnings, while Chennai Petroleum Corporation dropped more than 5 per cent. Genesys International Corporation, Faze Three and Astra Microwave Products shed over 4 per cent each for the day.

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