Benchmark Indices endon aflat note
Amid mixed global cues, the Indian markets witnessed a flat opening. However, post the opening, the indices witnessed a dip in the early hours, but recovered from the lows before ending the day marginally lower.Nifty witnessed a volatile trading session ahead of the weekly F&O contract expiry. The index recovered nearly 100 points from the lows to end the day marginally lower for the 2nd straight session. On the other hand, the Nifty Bank index gained nearly 300 points to end the day on a positive note, snapping its 3-day losing streak.
Broader Market Movement
The broader markets saw a bounce back after a pullback seen in the previous session, outperforming the benchmark indices with midcap closing the day with a 0.52 percent gain and the small cap ending the day with gains of 0.65 percent. On the sector front, the Banking and the Financial sector were the top gaining sectoral indices in today’s session, with Nifty Bank being the top performer with 0.82 percent gains and snapping a 3-day losing streak led by Kotak Bank. Whereas, the losing sectoral indices of the day were IT, Media and Auto, down over half a percent each. On the stocks specific side, Kotak Bank, BPCL and Grasim were the top gainers, ending with gains of over 1 percent and Nestle India, Divis Lab and Wipro were among the top losers.
Stocks in News
Shares of Maruti were down over 1 percent after the company reported its August production numbers, which saw an 8% dip compared to the same period last year.
Global Data Front
The US markets resumed trading after a long weekend, the indices ended Tuesday’s trading session on a mixed note. The NASDAQ closed at a fresh record high, while the Dow and the S&P 500 drifted lower. The futures of Wall Street’s three major indices are trading on a flat note. The Dow Jones Futures down 0.09 percent, the Nasdaq Futures down 0.07 percent, and the S&P 500 Futures down 0.07. While on the European front, the indices are trading on a negative note.
To summarise, Indian equity benchmarks closed flat on Wednesday, dragged by losses in Auto and IT shares. Sensex closed 29 points, or 0.05 percent, down at 58250 while the Nifty settled 8 points, or 0.05 percent lower at 17353. The levels to watch in the coming days for Nifty are 17500 on the upside, and on the downside, 17150 – 17100 would be the levels to keep an eye on.
By Mr. Aamar Deo Singh, Head Advisory, Angel Broking Ltd