Sensex, Nifty settle flat; Nelco rises 14%, Ultratech gains 3%; IT stocks lag

Domestic equity markets were able to recover from early cuts and ended flat amid mixed cues. Notionally, headline indices were able to extend their gains for the third straight session, positing almost negligible gains. Selling in the IT sector capped the gains, while traders await the RBI's monetary policy later this week.

For the day, the 30-share pack BSE Sensex added 5.41 points, or 0.01 per cent, to settle at 62,792.88, while NSE's Nifty50 rose 5.15 points, or 0.03 per cent, to end the session at 18,599. Broader market outperformed the headline peers as BSE midcap and smallcap indices rose about a half-a-per cent each. India VIX spiked slightly to 11.38-levels.

On a sectoral front, Nifty IT index topped the losers with a 2 per cent fall. Nifty Consumer Durables, Media, FMCG, Metals and PSU Bank indices were the other laggards. On the contrary, Nifty Auto and Realty indices added over a per cent each, while Nifty Pharma and Healthcare indices posted decent gains.

In the Nifty50 pack, Ultratech Cement surged about 3 per cent, leading the gainers. Divis Labs, Kotak Mahindra Bank, Grasim, Maruti Suzuki and Axis Bank added 2 per cent each. HDFC Life, Hero Motocorp, Bajaj Finserv, Mahindra & Mahindra and Eichers Motors were the other key gainers.

IT blue-chips Tech Mahindra, Infosys and Tata Consultancy Services topped among the losers, falling 2 per cent each. Wipro, ONGC, HCL Technologies and Hindalco were the other losers. Coal India and Bharti Airtel shed a per cent each.

While the markets ended flat, buying was seen in rate-sensitive stocks like banking, auto and realty ahead of the RBI’s MPC meet later this week. With expectations rising that the central bank could once again take a pause on rate hike, hopes of steady interest rates going ahead triggered optimism in the rate-sensitives, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

"Technically, the market is consistently holding a higher bottom formation.  For traders, 18,550 would be the trend decider level. Above the same, the index could move up to 18,700-18,750. On the flip side, below 18,550, uptrend would be vulnerable. Below the same, the market could retest the level of 18,480. Any further correction could drag the index till 18,440," he said.


The domestic market experienced profit booking due to selling pressure in the IT sector. IT stocks witnessed a decline in anticipation of further downward revision in spending, said Vinod Nair, Head of Research at Geojit Financial Services.

"However, a rally in auto and banks helped to recover the losses. Going ahead an important influencer will be the commentary on growth and inflation forecasts by the RBI following its MPC meeting given the general consensus that rate pause will continue," he said.

A total of 3,659 shares were traded on BSE on Tuesday, of which 1,987 settled with gains. 1,544 stocks ended the session higher while 128 shares remained unchanged. A total of 262 shares hit their upper circuit, whereas 118 shares tested the lower circuit levels for the day.

In the broader markets, Meghmani Finechem surged over 14 per cent, while Nelco gained more than 13 per cent. HBL Power Systems and ADF Foods surged 12 per cent each, while Force Motors and Shara Cropchem added 11 per cent each for the day.

On the contrary, Nureca dropped more than 5 per cent, followed by Indo Count Industries, H-Tech Gears, Sintex Plastics and Vesuvius India which declined 5 per cent each. Persistent System, Inox Green and Manksia dropped more than 4 per cent each.

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