Markets Trade Flat As Investors Stay On Sidelines

Mumbai: Equity benchmark indices Sensex and Nifty ended marginally lower in a volatile session on Wednesday, as investors stayed on the sidelines ahead of the earnings season amid lower eco-nomic growth projections. Besides, a depreciating rupee and persistent foreign fund outflows also dented sentiments. However, buying in bellwether stocks TCS and Reliance Industries man-aged to restrict a steep decline in markets, traders said.

The 30-share BSE benchmark Sensex fell 50.62 points or 0.06 per cent to settle at 78,148.49. During the day, it dropped 712.32 points or 0.91 per cent to 77,486.79. The NSE Nifty skidded 18.95 points or 0.08 per cent to 23,688.95.

“Slowing economic growth projections and caution ahead of Q3 numbers added volatility in the market. However, the market witnessed a recovery from the day’s low owing to the accumulation of beaten-down blue-chip stocks and in expectation of government reforms in the upcoming budget to lift the tepid economy. The near-term sentiment is likely to be subdued due to the rise in US bond yield and fear of fewer rate cuts by the Fed,” said Vinod Nair, head (research), Geojit Financial Services. The BSE smallcap gauge declined by 1.12 per cent, and the midcap index went lower by 1.09 per cent.

IT stocks to be in focus as Tata Consultancy Services is set to kick-start the Q3 earning season with its results tomorrow. While revenue for the IT giant is expected to remain impacted by fur-loughs, client-specific challenges are likely to normalize in 3Q. Its EBIT margin may improve, driven by talent development, training, and operational efficiency.