After a highly volatile session, benchmark stock market indices restored most of the gains after a subdued trade for a couple for hours as it failed to gain traction due to selling in large caps. The S&P BSE Sensex ended 60 points, or 0.14 per cent higher, at 41,932.56 points while broader Nifty 50 index settled at 12,356.25 points, up 13 points or 0.09 per cent. “Indian markets opened on a positive note but sold off as it failed to gain traction due to selling in large caps and sentiments remained dampened as expectations of India’s real fiscal deficit in FY20 to likely be higher at 4.5-5 per cent of GDP due to an expected shortfall in revenue, and higher spending took hold. Investors also remained cautious ahead of important December quarter earnings,” Narendra Solanki, Head of Fundamental Research- Investment Services, Anand Rathi Shares and Stock Brokers, said
On the Sensex pack, NTPC, Tata Steel, Tech Mahindra, Hero MotoCorp, Axis Bank, IndusInd Bank, each down over 1 per cent, were the top drags. Conversely, Nestle India, Kotak Mahindra Bank, Bharti Airtel and Hindustan Unilever gained the most.
“The main indices are seeing a mild pause in the trajectory after the solid performance in the last one-month. It may wait and analyse the upcoming key companies’ Q3 results. Globally, the completion of the US-China deal and sudden jump in consumer inflation and NPAs in India are impacting the main indices. But broad market is still very solid in expectation of re-rate in valuation supported by revamp in earnings growth,” Vinod Nair, Head of Research, Geojit Financial Services said.
All the sectoral indices ended in the green, except Nifty Metal index, dragged by JSW Steel, Hindalco, National Aluminium Company, Tata Steel and Vedanta. “On the sectoral front, Media, Realty and Pharma led the markets while Metals declined and others remained marginally positive for the day,” Narendra Solanki said.
The broader market continued to outperform the benchmark indices. The S&P BSE MidCap index gained 0.77 per cent or 119 points to end at 15,625.23, while S&P BSE SmallCap index settled at 14,647.54 points, up 0.78 per cent or 113.68 points. “However, some traction in mid and small caps stocks was visible today also as investors look for opportunity in beaten-down stocks ahead of the budget,” he said.