Active Stocks
Thu Sep 21 2023 15:54:10
  1. Tata Steel share price
  2. 127.8 -0.39%
  1. HDFC Bank share price
  2. 1,553.6 -0.66%
  1. NTPC share price
  2. 238.95 -1.1%
  1. Power Grid Corporation Of India share price
  2. 201.8 -1.42%
  1. ITC share price
  2. 447.4 -1.24%
Business News/ Markets / Stock Markets/  Stock markets end flat amid choppy trade

Mumbai: Snapping the rally since the government's decision to cut corporate taxes on Friday, Indian equity markets closed flat on Tuesday amid choppy trade. Banking and financial stocks were the top losers while information technology companies and Reliance Industries were the top gainers.

The Sensex closed 0.02% higher at 39097.14 points, while the Nifty ended 0.10% lower at 11588.20 points. Since Friday, the indices have gained nearly 8%.

"After a massive rally investors took some money out which led the indices to trade range bound. Sentiment factor is largely positive after the stimulus measures to attract allocation of more funds to mid & small caps. Bond yield inched higher despite the finance minister’s comment on retaining fiscal target of 3.3% for FY20 and no reduction in spending. While governments’ second half borrowing plan will be keenly watched to get a clearer view on direction." said Vinod Nair, head of Research, Geojit Financial Services Ltd

Among banking and financial stocks, State Bank of India fell 4%, Axis Bank 3.2%, Kotak Mahindra Bank 1.6%, Bajaj Finance 1.5%, HDFC Ltd 1.2%, ICICI Bank 0.9% and HDFC Bank 0.5%.

Among sectoral indices, Capital Goods index was the top loser, down 1.8%, followed by Metal and Bankex which fell 1.7% and 1.3%, respectively. Among gainers, BSE IT Index rose 2.3%.

IT stocks rose today after a sharp fall on Monday. Infosys Ltd rose 3.8%, Tech Mahindra Ltd gained 3.2%, and HCL Technologies was up 1.5%.

"Given the sharp upmove, it is a bit difficult to time entry now for those who have already missed the bus. But, we believe that this rally has more legs to unfold and hence, one should use buy on declines strategy and look for stock specific opportunities which are likely to outperform hereon. The immediate support for the index is placed in the range of 11400-11300 whereas the near term resistances are seen around 11705 and 11800," said Sameet Chavan, chief analyst-Technical and Derivatives Angel Broking.

Analysts said there was caution in the market as the slowdown in global economy remains in focus. Poor business activity readings from the euro zone deepened fears of a recession, suggesting more stimulus was required.

Shares of Reliance Industries Ltd surged over 3.1% to 1,277, having added over $10 billion in market valuation in the last three sessions after the government announced the cut in corporate taxes.

Shares of Thomas Cook (India) Ltd extended losses for the second straight session on Tuesday despite a clarification issued by the company that it was not a part of the UK travel giant Thomas Cook Group Plc which collapsed under a pile of debt. The stock has tanked nearly 6% in the last two sessions to hit a near one-month low. The scrip closed at 150.80 on the BSE, down 1.85% from its previous close. So far this year, the stock has declined 40%.

"While the market gains could extend in the coming sessions, we prefer to remain cautious at higher levels. Indian benchmark indices are trading near peak valuations and sustainability at this level is essential. Therefore, investors would closely monitor the movement in the coming sessions, as volatility would remain high. From medium to long-term perspective, outcome of RBI monetary policy and revival in corporate earnings will be crucial, as it is likely to dictate further market trend", said Ajit Mishra vice president, Research, Religare Broking Ltd.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 24 Sep 2019, 04:59 PM IST
Next Story
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App