Share market indices Sensex and Nifty turned volatile on Tuesday amid mixed global equities and closed flat with negative bias. After rising for six straight sessions, Sensex ended 19 points lower at 51,329 and Nifty fell 6 points to 15,109.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.30% to 24.27. Sensex hit a record high of 51,753 and Nifty hit a all-time high of 51,753 in early trade today. Both benchmark indices have gained over 11% in seven straight sessions.
Yesterday, Sensex closed 617 points higher at 51,348 and Nifty climbed 191 points to end at 15,115.
Asian Paints, Axis Bank, ONGC, HDFC, Titan, L&T were the top gainers while SBI, Kotak Bank, Dr Reddy, NTPC, TCS were among the top losers.
Sectorally, except for private banking and financial stocks, all the major indices closed in red territory, with over 1.8% drop in media, followed by a 1.4% fall in auto stocks.
Keshav Lahoti- Associate Equity Analyst, Angel Broking said,"Indian shares opened on a positive note, tracking positive trends in global peers amid bets that U.S. President Joe Biden will be able to push through his massive stimulus. The market corrected in the last trading hour to close flat for the day. Sectoral indices were mixed for the day. Market fundamentals and sentiments are strong to take the market to new highs. Continuous FII Inflow is very important for the rally in the market."
S Ranganathan, Head of Research at LKP Securities said, "Markets remained strong before giving away all its gains in afternoon trade due to profit-taking in autos and select pivotals. The broader markets, however, witnessed the demand for FMCG stocks, insurers, select NBFC and gas stocks."
Overseas, Asian stocks opened higher following overnight gains on Wall Street that saw the major indexes rallying to record closing highs as investors were optimistic on stimulus and an accelerated vaccine rollout. Biden has set a goal to administer at least 100 million COVID vaccine doses during his first 100 days in office.
European stocks were mostly in negative, while most Asian indices turned flat by Tuesday's afternoon session.
Vinod Nair, Head of Research at Geojit Financial Services said, "The market failed to hold onto its upward rally to close flat due to heavy selling towards the close, mirroring the weakness seen in the European market and outflows in equity mutual funds. Most of the sectors ended hitting rough weather with auto, pharma and media stocks being the worst affected. However, banking and finance stocks were in positive territory. US markets remained firm on hopes of the additional stimulus package and swifter economic recovery continued to maintain optimism."
On Nifty's technicals, Ashis Biswas, Head of Technical at CapitalVia Global Research said, "The market witnessed extend the gain further after the decisive break from the Nifty 50 Index level of 15000. The market has already attained the projected level of 15230-15250. The level of 15230-15250 act as short-term resistance. The momentum indicators like RSI, MACD to show divergence, supporting our view that the market is likely to pause around this level."