Key indices end in divergent trading

Mumbai Benchmark Sensex closed higher by 94 points, while the broader NSE Nifty retreated from record high levels in a volatile trading on Tuesday as investors turned cautious amid high valuation concerns.

Rising for an eighth day, the 30-share BSE Sensex rose by 94.05 points or 0.14 per cent to settle at 67,221.13 points. During the day, it jumped 412.02 points or 0.61 per cent to 67,539.10 points. The broader Nifty, however, pared all its gains and ended marginally lower by 3.15 points or 0.02 per cent at 19,993.20. During the day, the 50-issue barometer climbed 114 points or 0.57 per cent to hit its all-time high of 20,110.35 points.

“The level of pessimism has risen in the stock market leading to a precautionary approach to book profits on a notion that the valuation has extended beyond the rationale.

The correction is happening on mid-caps, while large-caps are maintaining their strength. This cautious trend can prevail in the short-term, but the end-game is on the rise of the domestic economy, surprising upside in corporate earnings, and change in domestic investment patterns, which is expected to continue on a long-term basis,” said Vinod Nair, head (research) at Geojit Financial Services.

Foreign Institutional Investors (FIIs) turned buyers as they bought equities worth Rs 1,473.09 crore, according to exchange data.

In the broader market, the BSE smallcap gauge tumbled 4.02 per cent and midcap index fell by 2.96 per cent. Among the indices, utilities tanked 3.74 per cent, power declined by 3.66 per cent, telecommunication (3.63 per cent), realty (3.26 per cent), oil & gas (3.07 per cent), energy (2.77 per cent) and industrials (2.76 per cent). IT, bankex and teck were the gainers.