Key indices snap 2-day rising streak in choppy trade
Sensex, Nifty end flat; BSE’s decision to curb volatility in smaller stocks triggers selling pressure in small and mid-cap counters
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Equity benchmarks recouped intra-day losses to end on a flat note on Wednesday as profit booking in banking and finance counters offset robust demand for metal and energy stocks.
Midcap and smallcap stocks saw heavy selling following BSE's new surveillance measure for the segment. However, the counters stabilised after the exchange clarified the additional price limits would be applicable only to certain stocks having market capitalisation of less than Rs 1,000 crore.
Snapping its two-session rising streak, the 30-share BSE Sensex ended 28.73 points or 0.05 per cent lower at 54,525.93. The broader NSE Nifty inched up 2.15 points or 0.01 per cent to 16,282.25.
"Following continued selling in broader markets and weak Asian and US peers, Indian indices shed its early gains. However, late recovery helped the market to close the day on a flat note. Measures taken by BSE to curb excessive price movement in smaller stocks triggered selling pressure in small and mid-cap counters, while clarity from BSE on limiting its restrictions to penny stocks gave some relief. Mainstream sectors succumbed to profit-booking while metal, energy and infra sectors traded against the trend," said Vinod Nair, head (research) at Geojit Financial Services.
