Sensex erases gains to end lower on slowdown worries

  • Nifty has support near 10,800-10,745 zone: Analyst
  • Auto stocks were in the limelight today

India's benchmark BSE Sensex reversed early gains and closed slightly lower on Thursday as sluggish economic growth kept investors cautious. The Sensex closed down 0.22% at 36,644.42, while the broader NSE Nifty ended 0.03% higher at 10,847.90.

Road and transport minister Nitin Gadkari today said the government would cut taxes on hybrid cars and not ban petrol and diesel vehicles at a time when the industry is fretting about plans to switch to electric vehicles.

The news helped the Nifty auto index close about 2.3% higher. Tata Motors was the top gainer with a jump of 7.81%.

"Nifty has support near 10,800-10,745 zone. Holding above these levels can see some swift move towards 10900-10960 zone which are immediate resistance on higher side. Nifty bank closed a day at 26,920 with loss of 204 points and formed bearish candle on daily chart. Support for the index is coming near 26700-26500 zone and resistance is coming near 27,150-27,400 zone," said Rohit Singre, senior technical analyst at LKP Securities.

Financial and banking stocks were among the top losers. HDFC was the top loser on the NSE index with a drop of 2.66%. (With Reuters Inputs)