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    Sensex ends flat dragged by IT stocks, Nifty at 18,600

    Synopsis

    From the Sensex pack, UltraTech Cement and Kotak Bank were the top gainers, rising 2-3%.

    Sensex flat todayiStock
    Indian equity markets recovered from lows but ended flat on Tuesday, after a 2-day rally as a slide in IT stocks overshadowed the gains in auto and private bank stocks amid hopes of a rate hike pause by the US Federal Reserve.

    Global markets were mixed Tuesday after a report that showed growth in service industries is slowing stoked concern the US economy is weakening.

    The 30-share BSE benchmark Sensex gained 5 points or 0.01% to settle at 62,793. The broader NSE Nifty rose 5 points or 0.03% to end at 18,599.

    From the Sensex pack, UltraTech Cement and Kotak Bank were the top gainers, rising 2-3%. Tata Motors, Axis Bank, Maruti, Bajaj Finserv, and Bajaj Finance also closed with gains. On the flip side, Infosys, Tech Mahindra, TCS, Wipro, and Bharti Airtel closed with cuts.

    Shares of Suzlon Energy closed 7% higher after the firm announced that it has achieved the milestone of 20 GW installed wind turbine capacity worldwide.

    Sector-wise, Nifty IT declined 1.88%, while Nifty Auto surged 1.09%. Nifty Financial Services and Nifty Pharma also closed higher. In the broader market, Nifty Midcap100 gained 0.06%, and Smallcap100 rose 0.54%. The market breadth was skewed in favour of the bulls. About 1,994 stocks gained, 1,535 declined, and 130 remained unchanged on the BSE.

    Global Markets
    Asian stock markets were mixed on Tuesday after Wall Street fell on concerns that the US economy may be weakening following a report that showed growth in services industries slowing. Tokyo and Hong Kong rose while Shanghai and Sydney declined.

    European stocks started Tuesday mixed. The pan-European STOXX 600 index was up 0.1% to 460.40. In the previous session, the index dropped as data pointing to tepid US business activity sparked profit-taking following gains in the prior week. Germany's DAX was flat, while London's FTSE dipped 0.3%.

    Expert Views
    "The domestic market experienced profit booking due to selling pressure in the IT sector. IT stocks witnessed a decline in anticipation of further downward revision in spending. However, a rally in auto and banks helped recover the losses," said Vinod Nair, Head of Research at Geojit Financial Services.

    Going ahead an important influencer will be the commentary on growth and inflation forecasts by the RBI following its MPC meeting given the general consensus that rate pause will continue, Nair added.

    Ameya Ranadive, Equity Research Analyst at Choice Broking, said, "Both the Nifty and Bank Nifty displayed a Doji pattern, indicating uncertainty among traders. To maintain the interest of the bulls, it is crucial for the Nifty to hold the levels of 18,400-18,450, while resistance is expected at 18,750-18,800. According to volume profile analysis, there is a strong support zone between 18,400-18,500 for the Nifty Index."

    Oil falls
    Oil prices tumbled more than $1 a barrel on Tuesday, after a strong rally in the previous session as worries about the global economic growth outweighed Saudi Arabia's pledge to deepen output cuts.

    Brent crude futures were down $1.38, or 1.80%, to $75.31 a barrel. US West Texas Intermediate crude fell $1.40, or 1.98%, to $70.72 a barrel.

    Rupee rises
    The Indian rupee strengthened 0.07% versus the US dollar, and quoted at 82.61 per dollar, unable to hold on to its opening gains on persistent cash and forward dollar demand. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, surged 0.15% to 104.16 level.

    (With inputs from agencies)



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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