After a volatile trading session, benchmark indices closed flat on Wednesday, tracking mixed cues from global markets. Sensex ended 39 points lower at 44,618 and Nifty gained 4 points to close at 13,113. Global equities turned positive today after Britain announced it became the first country to approve the Pfizer-BioNTech vaccine against COVID-19 and said the vaccine would be rolled out from next week. Hopes for additional US economic stimulus and a coronavirus vaccine kept market sentiment positive.
Earlier, Sensex and Nifty started the day on a weak note and fell more in the afternoon session due to selling in financial, IT and energy stocks amid profit booking. While Sensex fell 430 points to 44,223 and Nifty lost 103 points to 13,005. However, tracking positive cues from European markets, indices recovered the losses and ended flat.
Yesterday, Sensex ended 505 points higher at 44,655 and Nifty rose 140 points to 13,109. BSE's market cap also reached the highest-ever peak of Rs 1,76,22,306.71 crore in the last session.
Market was enthused amid the launch of Rs 810 crore initial public offering (IPO) by Burger King India today. Allotment of shares will be done on December 9 and shares of the firm are likely to be listed on December 14.
On the sectoral front, except banking and finance stocks, all other indices ended with healthy gains with realty, metal ending almost 3% higher, 2% rise in auto scrips. HDFC twins, Reliance Industries, HUL, TCS, L&T, SBI were among the top losers and Tata Steel, Titan and Asian Paints were among the top gainers.
Adding to their sharp gains from the previous month, main stock indices jumped in the United States yesterday and investor sentiment got a boost amid hopes that Congress could come out with a second proposal for a coronavirus aid package soon. This was after Senate Majority Leader Mitch McConnell rejected the first stimulus plan proposal worth $908 billion presented by a group of lawmakers.
Asian and European equities were mostly positive today as hopes for additional US economic stimulus and a coronavirus vaccine kept market sentiment positive.
In the market analysis report, Ajit Mishra, VP - Research, Religare Broking said, "The broader markets outperformed wherein both Midcap and Smallcap ended higher by 0.5% and 0.7% respectively. We're seeing consolidation in the index but the bias is still on the positive side. Going ahead, further updates on COVID vaccines and cues from the global markets will remain in focus. Besides, on the domestic front, RBI's monetary policy meet would also be on investors' radar. The MPC is likely to maintain the status quo however their commentary on growth and inflation would be critical.
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The Nifty failed to get past the 13150. It took support at the 13000 level and jumped back to close above 13100. The index needs to cross 13150 in order to achieve the next target of 13200-13300. We must note that this zone can prove to be a stiff resistance where selling pressures can be witnessed. On the downside, 12950-13000 is a good support and if we break that, we could see a slide of 150-200 points."
Vinod Nair, Head of Research at Geojit Financial Services said, "After the bull run, banking stocks are taking a halt, in anticipation of the Supreme Court hearing on moratorium and ongoing MPC meeting while both the outcomes are unlikely to hurt the banking industry. The sector can reverse, as implication of moratorium is well factored and RBI is expected to maintain its accommodative stance with no change in rate given heightened inflation in consecutive months. Positively, more liquidity measures can be released, given weak economic outlook and to support the banking sector. Globally, the market is maintaining its gains, due to talks of stimulus and vaccination in the US and Europe. While plans of vaccination and good GST collection is helping India to attain a faster economic recovery."
Indian rupee, the domestic currency, pared its initial gains and settled for the day 13 paise lower at 73.81 on Wednesday amid muted trading in equity markets.
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited- Investment Advisor said,"The market manages to hold above the Nifty 50 Index support zone of 13050. Our research suggests that the technical factors are aligned to support a range-bound market movement going forward. Therefore, it is advised that the short-term traders should use the rally to exit while attempting to buy on dip approach to adopt. Market breadth to deteriorate, indicating the likelihood of higher volatility in the market. Any corrective wave down should find buying interest around 12910-12920."
Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking) said,"As far as levels are concerned, 13150 is the immediate resistance to watch and after surpassing it, we may see an extension of the move towards 13225-13300 levels. On the flipside, 13000-12960 zone would be seen as immediate support which if breached, could lead to a healthy profit booking. The Nifty Midcap100 index surpassed the 20000 level after more than two years and it has been a remarkable move from the recent lows. While the momentum continues to remain strong, 19775 is the support that traders should keep a tab on and accordingly manage their trading positions."