Investors in wait n watch mode
Mumbai : Benchmark equity indices Sensex and Nifty ended on a flat note in a lackluster trade on Monday, as investors preferred to remain on the sidelines awaiting further triggers. Participants booked profits in select blue-chip stocks amid high valuation concerns, while selective buying in metals, oil & gas and IT shares supported the indices, according to experts.
In a range-bound trade, the 30-share BSE Sensex slipped 12.16 points or 0.02 per cent to settle at 80,424.68. During the day, it hit a high of 80,724.40 and a low of 80,332.65. The NSE Nifty edged up 31.50 points or 0.13 per cent to 24,572.65.
“The Indian market failed to catch up with the initial gains as there is a degree of profit booking witnessed in auto stocks due to a slowdown in demand. However, oil stocks gained momentum with the reduction in windfall tax on crude oil. The recent healthy US economic data diminished the likelihood of a US recession, while a slide in the dollar index supported the hypothesis of a rate cut in the September FOMC meeting,” said Vinod Nair, head (research), Geojit Financial Services.
In the broader market, the BSE smallcap gauge jumped 1.33 per cent, and the midcap index climbed 0.53 per cent.
“Markets moved in a narrow range due to thin participation from traders on account of Raksha Bandhan, while selective buying in metals, oil & gas, and IT shares helped indices end mixed,” added Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.
Among the indices, metal surged 2.28 per cent, oil & gas (1.76 per cent), energy (1.52 per cent), utilities (1.17 per cent) and commodities (1.02 per cent). Auto, bankex and capital goods were the laggards.
“Markets began the week on a muted note and ended nearly flat, taking a breather after Friday’s surge. Following an initial uptick, the Nifty traded within a narrow range,” remarked Ajit Mishra, Sr V-P, (research), Religare Broking Ltd.
Among the 30 Sensex firms, Mahindra & Mahindra, IndusInd Bank, Bharti Airtel, Axis Bank, Tata Motors, and ICICI Bank were the biggest laggards. In contrast, Tata Steel, Tata Consultancy Services, NTPC, JSW Steel, Asian Paints and Reliance Industries were gainers.