Benchmark stock market indices closed flat on Monday, after heavyweight financials erased gains from energy stocks.
The S&P BSE Sensex lost 12.16 points to close at 80,424.68, while the NSE Nifty50 added 31.50 points to end at 24,572.65.
“The Nifty remained rangebound throughout the day, appearing to pause before the next rally. The index closed above the recent consolidation for the second consecutive day. The trend likely favors the bulls as long as it stays above 24,300. On the higher end, the Nifty might move higher, with resistances placed at 24,750-24,800,” said Rupak De, Senior Technical Analyst, LKP Securities.
Vinod Nair, Head of Research, Geojit Financial Services said that the Indian market failed to catch up with the initial gains as there was a degree of profit booking witnessed in auto stocks due to a slowdown in demand.
In today’s Nifty 50 trading, Hindalco led the gainers with a jump of 4.00%. Shriram Finance also performed strongly, rising by 3.47%.
BPCL showed growth with a 3.32% increase, while Tata Steel gained 3.06%. Rounding out the top gainers was LTM, which climbed by 2.00%.
Mahindra and Mahindra was the biggest loser, dropping 2.59%. Bajaj Auto declined by 1.17%, followed by IndusInd Bank, which fell 1.07%. Axis Bank saw a decrease of 1.02%, and SBI Life completed the list of top losers with a 0.96% decline.
“However, oil stocks gained momentum with the reduction in windfall tax on crude oil. The recent healthy US economic data diminished the likelihood of a US recession, while a slide in the dollar index supported the hypothesis of a rate cut in the September FOMC meeting,” he added.
The Nifty Midcap100 index made modest gains, rising by 0.18%. This indicates a slight uptick in investor interest for medium-sized companies.
The Nifty Smallcap100 index performed even better, posting a significant increase of 1.71%. This suggests a strong bullish sentiment towards smaller companies in the market. On the other hand, the India VIX, often referred to as the fear index, dropped by 0.60%.
Several sectors faced declines, with Nifty Auto leading the losses at 0.89%. The banking sector also struggled, as Nifty Bank fell 0.29% and Nifty Private Bank dropped 0.49%. Nifty Financial Services and its subset, Nifty Financial Services 25/50, both dipped by 0.23% and 0.19% respectively.
On the positive side, Nifty Metal emerged as the top gainer, surging 1.87%. The Oil & Gas sector also performed well, rising 1.52%. Nifty PSU Bank showed strength with a 1.20% increase, while Nifty Media climbed 1.02%.
Other sectors in the green included Nifty Consumer Durables, up 0.92%; Nifty IT, gaining 0.88%; Nifty Pharma, advancing 0.59%; and Nifty Healthcare Index, rising 0.49%. Nifty FMCG and Nifty Realty saw modest gains of 0.18% and 0.15% respectively.