NEW DELHI: Domestic indices ended the Samvat year 2074 on a positive yet muted note on Tuesday as a selloff in banking and midcap stocks along with weak global cues capped gains.
However, a strong rupee, falling crude prices and strong macroeconomic data managed to keep the market above water.
The Nifty50 index ended the day with gains of 6 points, or 0.06 per cent, at 10,530. In between the two Samvat years, the 50-share index gained 4 per cent. On the NSE, 27 stocks settled lower while the rest ended with gains.
TCS came up as the top Sensex performer, with gains of 2.22 per cent, followed by YES Bank, Tata Motors, RIL, Sun Pharma and Power Grid.
SBI with a fall of 2.98 per cent was worst hit among the Sensex stocks. Other stocks that saw a bad day were Axis Bank (down 2.65 per cent), Maruti (down 1.31 per cent), IndusInd Bank (down 1.09 per cent), Adani Ports (down 1.08 per cent) and ITC (down 0.79 per cent).
All sectoral indices barring IT, realty and media turned red. Nifty PSU Bank index took the biggest beating, down 2.23 per cent.
On the BSE, the advance-decline ratio stood at 1:1.
Factors that moved the market today:
1. Recovery in rupee
The domestic unit gained against the dollar on Tuesday and was nearly 8 paise higher against the previous close of 73.13. The rupee had opened the day at 72.91 today.
2. Fall in crude prices
Oil prices declined on Tuesday after Washington granted sanction exemptions to top buyers of Iranian oil, lifting supply concerns and turning the market's focus to worries that an economic slowdown may curb fuel demand. Benchmark Brent crude futures were down 20 cents at $72.97 a barrel by 0929 GMT, Reuters reported.
3. Positive macroeconomic data
The country's services sector in October expanded at the quickest pace since July, driven by significant increase in new business orders, which in turn led to robust workforce expansion, a monthly survey said on Monday. This news kept investor spirit festive.
Jayant Manglik, President, Religare Broking
In a volatile trading session, the equity benchmark indices started on a positive note led by supportive global cues. However, it witnessed stiff resistance at higher levels and the index ended flat at 10,530 levels. The broader markets witnessed mixed trend.
While there have been some encouraging news for Indian equities with correction in crude oil prices and reversal in USD/INR, we remain cautiously optimistic in the near term, given the headwinds which persist both on domestic as well on the global front. The liquidity concerns in the NBFC sector are likely to keep investors on the edge.
On the global front, US midterm elections and US FOMC meeting are also likely to be on the market radar. Further, with more results to be announced in 1-2 weeks, we expect stock-specific volatility to continue. Thus, we would advise maintaining a stock-specific trading approach and focus more on position management.