Sensex closed lower on Wednesday amid losses in ITC, HDFC twins and Infosys. Sensex ended 85 points lower at 51,849 and Nifty inched up 1.35 points or 0.01 per cent to 15,576.
ITC was the top loser on Sensex, shedding nearly 3 per cent, followed by Tech Mahindra, Axis Bank, Asian Paints, TCS, HCL Tech, HDFC and Kotak Bank.
On the other hand, IndusInd Bank, PowerGrid, Reliance Industries, Bajaj Auto and Maruti were among the top gainers rising up to 1.81% .
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said, "Markets ended at almost unchanged levels in a lacklustre trade, but it seems that a corrective pattern has been completed. The 15,460 level would act as significant support for Nifty and Sensex if it breaks the level, it could fall to 15,430/15,330. The Nifty could once again hit 15650 and 15750 levels and one can buy the index between 15550/15500 levels with a stop loss at 15460."
Of 30 Sensex stocks, 18 closed in the red. BSE midcap and small cap indices rose 379 points and 303 points, respectively.
Auto shares led the gains with BSE auto index rising 390 points to 23,868. IT stocks were the top losers with BSE IT index slipping 147 points.
"Ahead of the MPC policy, domestic market continued its volatility with a mixed bias. Selling was witnessed in financials, IT and FMCG stocks but it reduced towards the close of trading," said Vinod Nair, Head of Research at Geojit Financial Services.
Weakness across US and Asian markets also added to the negative trend, he noted.
"PSU banks attracted buyers in hopes that the government will soon finalise the list for privatisation. In the policy, RBI is expected to focus on economic growth by maintaining the status quo on policy rates and ensuring liquidity while keeping an eye on the inflationary pressure due to rising commodity prices," Nair said.
Market cap of BSE-listed firms stood at Rs 224.62 lakh crore on BSE.
Market breadth was positive with 2139 shares rising against 974 stocks falling on BSE.
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities said, "Last concrete support was seen at 14,700 and we await closer support levels to mature in the near term. We believe the undertone is positive and any correction should be used as an opportunity to accumulate. We see value in IT, Auto and specific BFSI stocks."
Meanwhile, rupee fell for the third straight session today. The Indian currency lost another 19 paise to close at 73.09 against the US currency due to a stronger dollar in overseas market and weak domestic equities. It hovered in the range of 73.04 to 73.30 per dollar during the day. The domestic currency has lost 64 paise in the last three trading sessions.
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