Sensex ends flat after choppy session, Nifty near 16,950

Defying positive cues from global peers, benchmark equity indices closed marginally lower on Tuesday in a volatile market, dragged by IT and auto stocks.

The 30-share BSE benchmark Sensex declined 40 points or 0.07% to settle at 57,613. The broader NSE Nifty dropped 34 points or 0.20% to end at 16,952.

In the Sensex pack, Tech Mahindra, Tata Motors and Bharti Airtel were the top laggards, falling 2-3%. Wipro, Bajaj Finserv, HCL Tech, Bajaj Finance and L&T also ended with losses.

On the other hand, IndusInd Bank, Power Grid, HDFC Bank, ICICI Bank and NTPC ended with gains.

Shares of Adani Group companies remained under the pressure during the day. Its flagship firm Adani Enterprises ended over 7% lower on BSE. Meanwhile, Adani Green Energy, Adani Transmission, Adani Power, Adani Total Gas, Adani Wilmar and NDTV closed with a 5% lower circuit.

Sectorally, Nifty Realty fell 1.21% and Nifty auto declined 0.97%. However, Nifty Bank and Nifty Financial Services closed higher. In the broader market, Nifty Midcap50 dropped 0.30% and Smallcap50 plunged 0.74%.

Experts View
"Indian markets continued to stay in the grip of bears as investors remained cautious in expectation of further tightening from the RBI. While global market sentiment has been improving as the fears of broader contagion from the banking turmoil fade," Vinod Nair, Head of Research at Geojit Financial Services said.

Back home, nifty small and midcap stocks continued to underperform due to fall in investors risk appetite and FY23 tax harvesting, Nair said.

Jatin Gedia, Technical Research Analyst at Sharekhan, said, "Nifty witnessed yet another day of range-bound price action. It consolidated between 16900 – 17100 for the third consecutive day. On the upside initial targets are placed at 17200 and above that it can extend higher to 17450 – 17500. The crucial support zone is placed at 16910 – 16870."

Global Markets
Most Asian markets traded higher on Tuesday after global shares rebounded, with fears of a banking crisis easing thanks to the sale of fallen lender Silicon Valley Bank. Hong Kong rose more than 1%, while Shanghai was down. Tokyo closed higher, while Sydney, Singapore and Seoul also gained.

European stocks rose for a second session on Tuesday, lifted by commodity and banking shares, after a buyout deal for failed Silicon Valley Bank raised hopes that the banking crisis would be contained.

The continent-wide STOXX 600 index climbed 0.4%, extending its rebound after last week's market rout caused by the collapse of Credit Suisse and two mid-sized US lenders.

Brent crude rises
Crude prices firmed on Tuesday, extending sharp gains from the previous session amid supply disruption risks from Iraqi Kurdistan and hopes that turmoil in banking is being contained.

Brent crude futures gained 61 cents, 0.8%, to $78.73 a barrel. West Texas Intermediate US crude was up 53 cents, or 0.7%, to $73.34 a barrel.

Rupee Strengthens
The Indian rupee advanced against the US dollar on Tuesday as the rescue of failed lender Silicon Valley Bank (SVB) calmed worries about a larger fallout in the sector, with fiscal year-end related factors also supporting the local currency.

The rupee finished at 82.1875 per dollar, against its previous close of 82.37, getting a boost from the carry return of running short dollar positions on account of the upcoming change in the fiscal year.

(With inputs from agencies)