Markets end flat amid volatile trade; oil stocks slip, IT shines

Sensex ends 41 points lower at 27,645. Nifty slips 8 points to 8,365 levels.

T he markets took a pause, amid a volatile session of trade, after gains witnessed in the previous session.

Snapping a two-day rally, the Sensex ended at 27,645, lower by 41 points and the Nifty held on to the technically crucial 8,350 mark to settle at 8,365, down 8 points.

The broader markets also ended on a listless, alebit a divergent note; the smallcap index gained 39 points, while the smallcap index shed 16 points.

The markets had a good performance on Monday, with the Sensex soaring by 363 points or 1.3% at 27,687 and the Nifty zooming by 111 points to settle above the crucial 8,350 mark at 8,373.

On Tuesday, the BSE benchmark swung in a range of around 300 points between an intra-day high of 27,872 and a low of 27,574 during the day.

The Nifty, too, had reclaimed the 8,400 mark to touch a high of 8,427 early this afternoon, on the back of positive European markets, before succumbing to profit-booking pressure at higher levels.

"Sustainability seems difficult at higher level, due to existence of multiple hurdle in Nifty around 8450-8500 spot zone and it almost tested that band today.

Now, we expect profit taking in coming sessions and index to undergo in consolidate phase around the current level.

Traders are advised to maintain extra caution while choosing trading bets as we have been witnessing only selective counters witnessing directional move while rest are trading extremely volatile in broader range these days; thanks to prevailing earning season," said Jayant Manglik, President-retail distribution, Religare Securities in a note.

The market breadth was marginally positive.

Out of 2,857 stocks traded on the BSE, there were 1,452 advancing stocks as against 1,292 declines.

SECTORS & STOCKS

Tata Motors, HDFC, Axis Bank and ONGC were the major laggards, while Hero Motocorp, Vedanta, Wipro and Infosys saw buying interest among the frontline stocks.

The rate-sensitives came under selling pressure after their recent gains. In the auto space, Tata Motors, Bajaj Auto and M&M slid between 1% and 2% each.

In the banking space, Axis Bank, ICICI Bank, HDFC and SBI shed about 0.5% each.

Oil stocks also witnessed profit-booking after rallying 1-3% each in the previous session.

ONGC shed more than 1%, while BPCL, Cairn India and Oil India lost around 0.5% each. However, RIL edged up marginally.

On the other hand, the BSE IT index gained nearly 1% as the dollar rose to almost a one-week high against a basket of currencies, recovering from a four-month low.

Meanwhile, Infosys became the first Indian company to join RE100, a global platform for major companies committed to 100% renewable power.

Infosys and Wipro gained more than 1% each, while the mid-tier IT companies such as Tech Mahindra, HCL Tech and NIIT also added 1-2% each.

The metal stocks also had a good session, with Vedanta, JSW Steel, Hindalco and Tata Steel adding 1-2% each.

RESULTS IMPACT

JBM Auto dipped 12.5% to Rs 207 on the NSE after reporting a 15% year-on-year decline in its consolidated net profit at Rs 17.58 crore for the fourth quarter ended March 31, 2015 (Q4), due to lower operational income.

Cheviot Company soared by 16.6% to Rs 449 after reporting around five-fold jump in net profit at Rs 15.43 crore in the March quarter.

Sterlite Technologies rallied 9.3% to Rs 72, extending its previous day’s 4% gain on the NSE, after reporting nearly fourfold jump in its standalone net profit at Rs 39.13 crore for the fourth quarter ended March 31, 2015 (Q4).