Sensex ends flat after 2-day rally; Adani stocks rally up to 14%

Domestic indices advanced marginally on Tuesday following a rangebound trade amid US debt ceiling talks, aided by fresh foreign inflows. The 30-share BSE benchmark Sensex rose 18 points or 0.38% to settle at 61,981, while the blue-chip Nifty index climbed 33 points to 18,348, propelled by a broad-based rally across sectors and powered by Adani group stocks.

From the Sensex pack, Bajaj Finserv, Tata Motors, Asian Paints, ITC, IndusInd Bank, SBI and Tata Steel were the top gainers, while Reliance, TCS, HDFC, HUL closed lower.

Adani stocks extended their rally, surging up to 14% in Tuesday's trade. Adani Green and Adani Wilmar were locked in 5% and 10% upper circuits, respectively.

Shares of budget carrier SpiceJet closed nearly 14% lower as the airline marked its 18th anniversary.

Sectorwise, Nifty Metal rallied 2.59%, and Nifty Pharma gained 0.57%. Nifty PSU Bank and Nifty FMCG also ended higher. In the broader market, Nifty Midcap100 rose 0.63%, and Smallcap100 ended flat.

The market breadth was slightly in the favour of the bulls. About 1,775 stocks gained, 1,733 declined, and 116 remained unchanged on the BSE.

Global Markets
Asian stocks were mixed on Tuesday amid uncertainty over debt ceiling negotiations.

The Shanghai Composite Index fell 1.4%, while Hong Kong's Hang Seng Index lost 1.3%. Japan's benchmark Nikkei 225 shed 0.4% to finish at 30,957.

European shares fell on Tuesday on weak updates from Julius Baer and Vivendi, while resilient euro zone business growth in May bolstered the chances of an interest-rate hike by the European Central Bank.

The pan-European STOXX 600 index slipped 0.3% as declines in luxury stocks offset gains in the battered real estate sector.

Rupee watch
The rupee traded in a narrow range and settled for the day 2 paise higher at 82.82 (provisional) against the US dollar on Tuesday, amid a muted trend in domestic equities.

Oil prices
Oil prices slipped on Tuesday, getting a boost from a tighter market due to a seasonal rise in gasoline demand and supply cuts from OPEC+ producers.

Brent crude futures fell to $75.93 a barrel, while US WTI crude was down to $72.04.

Expert Views
"The market sentiment was challenged by a sell-off in IT stocks, influenced by weak signals from the US market. The direction of the US market is anticipated to impact global equities, with investors closely monitoring upcoming events such as the release of FOMC minutes, US PMI, and progress in debt-ceiling talks," said Vinod Nair, Head of Research at Geojit Financial Services.