Sensex, Nifty end flat in cautious trading

Mumbai Benchmark equity indices Sensex and Nifty ended almost flat in a see-saw trade on Tuesday as investors traded cautiously, awaiting cues from the US Federal Reserve’s policy stance.

Foreign fund outflows and elevated level of crude oil prices also weighed on the investor sentiment, traders said. The 30-share BSE Sensex slipped 29.07 points or 0.04 per cent to settle at 66,355.71. During the day, it touched an intra-day peak of 66,559.29 and hit the lowest level of 66,177.62. The NSE Nifty inched up by 8.25 points or 0.04 per cent to end at 19,680.60. The broader index moved between the range of 19,729.35 and 19,615.95.

“Indian indices hovered along the flat line, waiting ahead for the crucial decision of Fed policy. Metal stocks rose due to China’s commitment to provide policy support to its realty sector, while utilities were up in anticipation of demand & improvement in operating margin,” said Vinod Nair, Head of Research at Geojit Financial Services.

In the previous two sessions, the indices have seen correction after reaching their lifetime peaks on Thursday. Nair attributed the correction in the market to lower-than expected quarterly performance of some bellwether companies, outflow of foreign funds and stronger dollar. “The recent correction of the domestic market can be attributed to several factors, including muted start to Q1 results, a reversal in FII activity, a rising dollar index, and an increase in crude oil prices,” he added.