Sensex, Nifty end flat amid good global cues

It’s a flat close for the market on Tuesday morning, with the Nifty managing to hold 10,900-mark. Indices traded in a narrow range through the day, but gave up some gains towards the end of session.

The broader market indices continued their underperformance, with BSE Midcap & Smallcap closing lower by 0.5% & 0.9% respectively.

With this close, both Sensex and Nifty have closed higher for fourth consecutive session.

The sectoral indices exhibited a mixed trend. Consumer durables, auto and banks registered healthy gains, while realty, power, capital goods, metals and FMCG witnessed selling pressure and closed in the red. Globally, the European markets were trading on a positive note.

There was some support offered from positive global cues as well as upmove in the rupee.

At the close of market hours, the Sensex was up 34.07 points or 0.09% at 36616.81, and the Nifty up 22.10 points or 0.20% at 10934.40. The market breadth was negative as 852 shares advanced, against a decline of 1679 shares, while 146 shares were unchanged.

Hero MotoCorp, IndusInd Bank, Zee Entertainment and Titan were the top gainers, while Tata Motors, Coal India, and Tata Steel lost the most.

Stocks in the News

Shares of Bharti Airtel are ended higher after losing 4 percent as investors turned cautious of a ratings downgrade.

Shares of Dominos Pizza India operator, Jubilant FoodWorks, fell 6 percent after the National Anti-Profiteering Authority (NAA) fined the company for not passing on GST rate cut benefits to customers.

Punjab National Bank (PNB) reported a surprise net profit of Rs 246.5 crore for the December quarter. This implies a jump of 7 percent from Rs 230 crore that the bank posted during the same quarter of last year. The stock ended around half a percent higher.

Bharat Heavy Electricals (BHEL) reported a net profit growth of 25 percent (year on year) for the December quarter at Rs 192 crore. The company had posted a profit of Rs 153 crore last year.

Global Markets

European stocks surged to nine-week high as participants digested corporate earnings. Stoxx 600 was up around 0.7 percent.

Australian banking stocks gained Tuesday after a special government-appointed inquiry into the country’s financial sector did not recommend breaking up any of the banks or interfering in the way they lend money.

Meanwhile, Japan’s Nikkei 225 gave up early gains and declined 0.19 percent to 20,844.45 while the Topix index added 0.1 percent to 1,582.88.

Tuesday’s session in Asia followed overnight gains on Wall Street.

“We expect the markets to remain range bound and volatile in the coming sessions. The market participants would keep an eye on the balance Q3FY19 earnings season and the RBI’s Monetary Policy (scheduled on Feb 07, Thursday) which will provide near-term direction to the market. Globally, US-China trade talks, crude oil price and INR-USD movement would be closely tracked by the investors, as it would induce high volatility in the coming sessions. Investors’ focus should remain on fundamentally sound companies with strong financials and healthy prospects,” Jayant Manglik, President, Religare Broking said in a statement.