Investors in wait n watch mode

Benchmark stock indices Sensex and Nifty closed flat after a volatile trade on Tuesday as investors booked profits amid concerns over potential rate hikes in the US and persistent foreign fund outflows. The BSE barometer eked out gains of 3.94 points or 0.01 per cent to settle at 65,220.03. During the day, it climbed 146.82 points or 0.22 per cent to a high of 65,362.91. The NSE Nifty inched up 2.85 points or 0.01 per cent to settle at 19,396.45.

“Despite the support of positive international markets, Indian equities struggled to maintain their upward momentum due to lingering apprehensions over ongoing global uncertainties,” said Vinod Nair, head (research) at Geojit Financial Services.

“Markets ended flat with a positive bias in an extremely lacklustre trading session, as traders preferred to stay on the sidelines after witnessing choppy trades over the past week or so. Despite the range-bound session, buying activity was seen in power and capital goods stocks, while IT stocks failed to deliver, despite a strong upsurge in the tech-heavy Nasdaq in overnight trades,” said Shrikant Chouhan, head (research-retail), Kotak Securities Ltd.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,901.10 crore, according to exchange data.

Sectors closely tied to the Western economy, such as IT and pharma, faced challenges, while domestic-oriented sectors, alongside mid and small-caps, exhibited resilience and gained traction. “The influence of higher bond yields and concerns about potential rate hikes in the US is prompting FIIs to withdraw funds from the domestic market, contributing to the market's volatility,” Nair said.