The Indian equity benchmarks concluded Tuesday's trading session on a subdued note, putting a pause to their recent two-day winning streak. The session was characterized by volatility and a lack of clear directional momentum, with investors opting to book profits in sectors that had recently seen strong gains.
Benchmarks End Flat Amid Choppy Trade
After opening in positive territory, the markets quickly turned choppy. The 30-share BSE Sensex oscillated within a narrow band before settling at 73,953.31, marking a decline of 42.20 points or 0.06%. Similarly, the broader NSE Nifty 50 index closed at 22,529.05, down by 19.70 points or 0.09%.
The trading pattern reflected a cautious stance among participants. While the benchmarks managed to stay above crucial support levels, the failure to build on Monday's gains indicated profit-taking activity, especially in overbought pockets. Market breadth was mixed, reflecting the indecisive sentiment.
IT Sector Bears the Brunt of Selling Pressure
The information technology (IT) sector emerged as the primary drag on the indices. Following a recent rally, investors chose to lock in profits, leading to notable declines in major IT stocks. Tech giants like Infosys, Tata Consultancy Services (TCS), HCL Technologies, and Tech Mahindra were among the top laggards on the Sensex.
This sector-specific correction offset gains seen in other areas. Analysts noted that the profit booking in IT was a natural market movement after the sector's outperformance, driven by expectations of improving global demand and stable quarterly results.
Key Gainers and Sectoral Performance
Despite the overall flat close, several heavyweight stocks provided support and limited the downside. Reliance Industries, HDFC Bank, and Larsen & Toubro were among the prominent gainers, attracting buying interest.
On a sectoral basis, the performance was divergent:
- Losers: Nifty IT and Nifty Media were the top sectoral losers.
- Gainers: Nifty Realty and Nifty Oil & Gas indices managed to close in the green.
In the broader market, the BSE Midcap index edged higher by 0.13%, while the Smallcap index rose by a more significant 0.60%, indicating continued interest in smaller companies.
The overall market sentiment was also influenced by mixed global cues and fluctuations in crude oil prices. Investors are now keenly awaiting fresh domestic and international triggers for the next directional move. The immediate support for Nifty is seen around the 22,450 level, while resistance is placed near 22,600.
