Key mkt indices end flat as investors wary of global cues
Equity markets log gains for 2nd session; Power, finance shares advance; Foreign fund outflows and a muted trend in global equities capped the gains; Investors await release of US GDP and PCE inflation data; The US Fed is expected to raise rates by another 25bps in its announcement on May 3
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Mumbai: Equity benchmarks -Sensex and Nifty- closed higher for the second straight session on Tuesday, helped by buying in power and utility stocks amid positive quarterly numbers announced by heavyweight companies. However, foreign fund outflows and a muted trend in global equities capped the gains, traders said.
In a highly volatile trade, the 30-share BSE Sensex rose 74.61 points or 0.12 per cent to settle at 60,130.71. During the day, it hit a high of 60,268.67 and a low of 60,202.77. The broader NSE Nifty gained 25.85 points or 0.15 per cent to end at 17,769.25.
“The domestic market succeeded in holding the gains, though multiple attempts were made by bears to reverse the trend considering the weak global market. Investors are highly nervous as they await the release of US GDP and PCE inflation data, which will guide the upcoming Fed action. The Fed is expected to raise their rates by another 25bps in its announcement on May 3,” according to Vinod Nair, head (research) at Geojit Financial Services.
“Cautious optimism prevailed as sluggish to negative global markets’ sentiment prompted traders to take selective bets in metals, oil & gas, and financial stocks. The bigger concern is that the rate hike cycle in the US and European nations is likely to continue, which may further push key economies into a slowdown phase and hurt growth,” said Shrikant Chouhan, head (equity research -retail), Kotak Securities Ltd.
“Global stocks fell broadly, and the US dollar also weakened early on Tuesday, as investors weigh corporate earnings and economic growth outlooks in a busy week and grow increasingly nervous about the extent of China’s recovery and potential US restrictions on investments in the world's second-biggest economy,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“Volatility and choppiness are likely to continue in Wednesday’s trading session with Nifty’s biggest support seen at the 17,543 mark, while the index may gain strength only above the 17,863 mark. Markets witnessed a positive session, but the benchmark Nifty wobbled at the day's high amidst a cautious market mood in the backdrop of overbought technical conditions,” said Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.
Foreign Institutional Investors (FIIs) offloaded shares worth a net Rs412.27 crore on Monday, according to exchange data.
Bajaj Finance led the Sensex gainers' chart, spurting up to 2.38 per cent, followed by Bajaj Finserve rising 2.11 per cent and IndusInd Bank closing 1.66 per cent higher. Bharti Airtel, SBI and L&T increased by 1.60 per cent, 1.28 per cent and 0.92 per cent, respectively. In contrast, HDFC twins, Tech Mahindra, Sun Pharma, Wipro and Axis Bank were among the main laggards, shedding up to 1.47 per cent.
