BackSensex, Nifty end flat after hitting record high
Sensex closed 0.02% lower at 27,860.38 points, while Nifty closed 0.02% higher at 8,324.15 points
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Mumbai: The BSE Sensex and Nifty hit a third consecutive record high on Monday but the gains fizzled out later in the session, with both indexes ending flat as automakers such as Tata Motors Ltd. declined after monthly sales fell.
Earlier in the session, sentiment had been supported by a continued rally in lenders such as ICICI Bank Ltd. due to expectations the Reserve Bank of India (RBI) would cut interest rates as early as its next policy reviews in December or February.
The broader Nifty had risen as much as 0.34% to a record high of 8,350.60, as sentiment was upbeat after the US shares ended at record highs on Friday on the back of the Bank of Japan’s surprise move to ramp up its stimulus programme.
Sentiment was also positive as overseas investors bought Indian shares worth $285 million on Friday, their biggest single-day buying since 5 September, exchange and regulatory data showed.
“We have seen a one-sided rally in the past few sessions. There could be some profit-booking. However, the undercurrent is still positive," said Suresh Parmar, head, institutional equities at KJMC Capital Markets.
The benchmark BSE Sensex closed 0.02% lower at 27,860.38 points after earlier rising as much as 0.37% to a record high of 27,969.82 points.
The broader Nifty closed 0.02% higher at 8,324.15 points.
Markets will be closed on Tuesday for a public holiday.
Data showing a modest pick-up in Indian factory activity, according to the HSBC Manufacturing Purchasing Managers’ Index (PMI), failed to have much of an impact.
Banking stocks gained with State Bank of India (SBI) closing 0.76% higher on hopes of rate cuts. Traders also said the lender’s decision to cut some deposit rates could improve margins. ICICI Bank closed up 1.2%.
SBI and ICICI Bank have gained 4.8% and 3.3% respectively in the last week.
Among state-run lenders, Punjab National Bank (PNB) closed up 2%, while Bank of Baroda gained 2.2% and Canara Bank ended 1.7% higher.
Airlines also rose. Jet Airways (India) Ltd. ended up 3.7% while SpiceJet Ltd. gained 6.8% after state-run oil marketing companies cut jet fuel prices.
However, auto stocks declined. Mahindra and Mahindra Ltd. closed 2.96% lower, Maruti Suzuki India Ltd. ended down 1.5% and Tata Motors Ltd. fell 0.83%.
Among other decliners, GAIL (India) Ltd. closed down 5.6% despite posting a 42% rise in September quarter earnings as analysts say the profits were “propped up" by zero subsidy provision from the government. Reuters
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