Benchmark indices Sensex and Nifty gave up early gains on the back of mixed global cues and ended marginally higher on the F&O expiry day. Extending gains for the fifth straight session, the S&P BSE Sensex ended 39 points higher at 39,113. The Nifty 50 index ended 9 points higher at 11,559. Yesterday, Sensex ended 230 points higher at 39,073 and Nifty 50 index ended 77 points higher at 11,549.
Sectorally, except IT and FMCG, all the other indices closed in bullish territory, with over 6% gains registered in realty index and over 1% gain in auto and PSU Bank. Realty stocks moved higher in today's trade after stamp duty cut by Maharashtra government to support the ailing sector, while auto stocks like Tata Motors, M&M gained after Maharashtra government waived taxes on commercial vehicles.
IndusInd Bank, followed by HDFC twins, SBI, M&M, ICICI Bank, Axis Bank, ITC and Asian Paints were among the top gainers in the Sensex pack. On the other hand, Bajaj Auto, Bajaj Finance, HUL and NTPC were among the laggards.
On the currency front, Indian rupee, which fell 6 paise on opening deals, ended 0.65% stronger at 73.82, its highest level against the dollar since March 13. The local unit settled at 74.30 per dollar yesterday.
Vinod Nair, Head of Research at Geojit Financial Services, said, "Domestically, Autos and Financials contributed most to the gains after favourable earnings commentary and some earning upgrades prompted investor action. Global markets will react to the Fed Reserve statements, later in the day, and are expected to affect market movements tomorrow."
Global bullish rally faded by the afternoon session today, with European markets reversing back into the red territory, as the focus turned to a speech by the US Federal Reserve chairman later in the day.
Asian markets continued to trade mixed, while Wall Street stocks closed higher yesterday. Globally, investors awaited with caution on the US Fed Chairman Jerome Powell's view on monetary policy and on economic condition. Fed Chairman Jerome Powell will speak Thursday during a virtual version of the Fed's annual Jackson Hole, Wyoming, conference. He is expected to outline what could be the central bank's most active efforts ever to spur inflation back to a healthy level.
Keshav Lahoti, Associate Equity Analyst, Angel Broking said, "Global stocks slipped ahead of US Federal Reserve Chairman Jerome Powell's speech on the US Central Bank's view on inflation and monetary policy. Nasdaq futures, Dow futures and FTSE were down by 0.18%, 0.35% and 0.21% respectively. Nifty smallcap (up 0.53%) continued to outperform the broader index."
As per technical outlook, where Nifty failed to hold 11,600, Sensex closed just above 39,100.
Commenting on Nifty's technicals, Aamar Deo Singh, Head Advisory, Angel Broking said, "Lackluster trading was witnessed throughout the day, with the benchmark index Nifty 50, unable to hold onto the initial gains of the day. Shorts have been squeezed hard in this expiry, and with Nifty closing above the psychological mark of 11,500, bears are likely to remain cautious. Nifty would meet with a stiff wall of resistance around 11600-11650 zone whereas support is seen around 11250-11350 zone."
Rohit Singre, Senior Technical Analyst at LKP Securities said,"Index closed a day at 11559 with mild gains of 9 points and formed a bearish candle on the daily chart. Index has good support near 11500 zone any break below said level can lead in more profit booking and we may see sharp cuts towards 11400 zone, resistance is placed at 11600-11650 zone."