Indian markets ended almost flat today with some selective buying seen in auto stocks. Maruti Suzuki shares were up nearly 2% while Axis Bank, HDFC and Reliance Industries were the other stocks driving the Sensex.
In a volatile trading session, the Indian benchmark indices swung both ways before closing flat at 11,937 levels. Sensex rose 42.28 points to close at 40,487.43 while Nifty settled above 11,930.
"The broader markets ended on a mixed note with BSE Midcap closing marginally higher and smallcap ending lower by 0.4%. The sectoral indices exhibited mixed trend. While sectors like Auto, Oil & Gas and Metals ended with healthy gains, other indices like Capital Goods, IT and Realty closed with losses," Ajit Mishra, VP - Research, Religare Broking Ltd, said.
Going forward, market participants would keep a close watch on CPI, IIP and WPI numbers scheduled to release this week. On the global front, trade deal developments between US-China would be a key determinant in deciding the direction for Indian as well as global markets.
Vinod Nair, Head of Research at Geojit Financial Services, said the market was range bound as investors are closely watching the upcoming economic macros like CPI inflation and IIP data for any signs of progress in government's effort to revive the economy. "FIIs are likely to turn risk averse in domestic market as strong US job data, progress in trade talks & expectation of status quo policy from US FED will add impetus to global market," he said.
On the other side, falling interest rate, easy monetary policy across the globe and liquidity is limiting downside for Indian stocks, he said. "We expect higher volatility and Nifty50 is likely to trade in the range 11750-12100," he added.
Markets are expected to remain volatile this week, says Jimeet Modi, CEO of SAMCO Securities.
"US Fed Meeting outcome, advancement in Trump’s impeachment process will be major international events while listing of Ujjivan Small Finance Bank IPO, fundraising by Yes Bank will be some domestic factors traders can keep an eye on," he said.
Yes Bank board will meet tomorrow to finalize and approve the details of a preferential allotment and convene an extra-ordinary general meeting subsequently, to obtain the approval of the shareholders.
Ashish Nanda of Kotak Securities says that markets could dip in the near term. "Technically, the Nifty is heading for 11700 and on the higher side, 11950 and 12000 would be major hurdle zone," he said.
Elsewhere, other Asian markets were mostly higher as investors tracked a rally on Wall Street that was fuelled by a better-than-estimated US jobs report, while there was little inspiration from tepid Chinese trade data.