Markets snaps 2-day falling streak, Sensex inches up 40 points in lackadaisical trading

Mumbai: Benchmark Sensex edged up nearly 40 points while Nifty ended above 25,750 points in a lackadaisical trade on Monday, snapping the two-day declining streak on buying in select auto and banking shares.

The 30-share BSE Sensex inched up by 39.78 points or 0.05 per cent to settle at 83,978.49 as 14 of its constituents advanced and 16 declined. During the day, it hit a high of 84,127 and a low of 83,609.54.

The 50-share NSE Nifty eked out a marginal gain of 41.25 points or 0.16 per cent to end at 25,763.35.

Profit taking at higher levels due to the absence of fresh domestic trigger and foreign fund outflows kept the market rangebound, analysts said.

Among Sensex firms, Mahindra & Mahindra was the biggest gainer, gaining 1.7 per cent after the October sales data. Tata Motors Passenger Vehicles (TMPV) rose by 1.69 per cent. Eternal, State Bank of India, Bharti Airtel and Kotak Mahindra Bank were also among the major gainers.

However, Maruti Suzuki dropped the most by 3.37 per cent. ITC, TCS, Larsen & Toubro, Bharat Electronics and Titan were the major laggards.

“The domestic market ended on a marginal positive note as profit-booking was visible at the higher levels due to the absence of fresh domestic triggers. While the broader market outperformed since the quarterly earnings are steering investors’ preference to take a short- to medium-term view,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

The PSU Banking index remained a preferred bet for investors, driven by healthy earnings and improving asset quality. In contrast, IT stocks declined amid fading expectations of a US Fed rate cut, while a trade truce between the US and China eased the demand for safe-haven assets, Nair added.

The BSE smallcap gauge climbed 0.71 per cent and midcap index went up by 0.62 per cent.

Telecom jumped the most by 2.90 per cent, followed by realty (2.26 per cent), healthcare (1.14 per cent), oil & gas (0.96 per cent), financial services (0.62 per cent) and bankex (0.61 per cent). Utilities, consumer durables, IT and BSE Focused IT were the laggards.

“Markets held steady on Monday, with the Nifty-50 closing nearly flat at 25,763.35, indicating continued consolidation after a strong October rally. The index opened on a subdued note and remained range-bound throughout the session amid mixed global cues,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

The rupee extended its descent for the third straight day and settled 7 paise down at 88.77 against the US dollar on Monday, near its all-time low level, weighed down by a strong American currency and foreign fund outflows.

FIIs offloaded equities worth Rs 6,769.34 crore on Friday, while Domestic Institutional Investors bought stocks worth Rs 7,068.44 crore, according to exchange data.