Sensex, Nifty end flat as banking sector downturn offsets IT surge

The S&P BSE Sensex lost 33.49 points to end at 84,266.29, while the NSE Nifty50 was down by 13.95 points to close at 25,796.90. 

In Short

• Sensex, Nifty end lower amid mixed performance
• IT, FMCG stocks rise; banking sector sees profit booking
• Midcap, Smallcap indices gain; India VIX falls 6.25%

Benchmark stock market indices ended lower on Tuesday after a rally in IT and FMCG stocks was offset by shares in the banking sector as the market witnessed profit booking.

The S&P BSE Sensex lost 33.49 points to end at 84,266.29, while the NSE Nifty50 was down by 13.95 points to close at 25,796.90.

Vaibhav Vidwani, Research Analyst at Bonanza Portfolio Ltd said that the Indian stock market exhibited a mixed performance, with both the Sensex and Nifty indices closing marginally lower after a volatile trading session.

"Despite early gains driven by IT stocks, selling pressure emerged from sectors like Oil&Gas, Energy and Realty, leading to a decline in overall market sentiment. In broader markets, the BSE Midcap and Small cap indices also fell, indicating widespread caution among investors amid mixed global cues and recent profit booking activities," he added.

The Nifty Midcap100 index posted a gain of 0.34%, indicating strength among mid-sized companies. The Nifty Smallcap100 index performed even better, rising by 0.79%, suggesting a strong day for smaller companies. India VIX, often referred to as the fear index, saw a substantial decline of 6.25%.

Aditya Gaggar Director of Progressive Shares said that on the sectoral front, Media and IT were the top performers while Energy was the major laggard; mid and smallcaps advanced by 0.34% & 0.79% and outshined the Frontline Index.

"After a big bearish candle, Nifty50 has formed a DOJI candlestick with a probable hidden bullish divergence in the RSI. A convincing move above today's high i.e. 25,910 will confirm the divergence and in that scenario, the momentum may extend to 26,000; while on the flip side, a break below 25,750 will drag the Index lower to 25,575," he added.

Several sectors posted gains, with Nifty Media leading, up 1.60%. Nifty IT also performed well, increasing by 1.17%. Other sectors in the positive included Nifty Consumer Durables (0.36%), Nifty Metal (0.24%), Nifty Auto (0.21%), and Nifty Midsmall Healthcare (0.18%). Nifty Pharma and Nifty PSU Bank recorded slight gains of 0.07% and 0.09% respectively.

On the other hand, some sectors saw declines. Nifty Oil & Gas dropped the most, falling by 0.67%. The financial services sector showed some weakness, with Nifty Financial Services 25/50 down by 0.13%, Nifty Private Bank down by 0.12%, and Nifty Bank down by 0.10%. Nifty Realty fell by 0.20%, while Nifty FMCG dropped by 0.17%. Nifty Healthcare Index saw a slight dip of 0.07%, and Nifty Financial Services saw a marginal decrease of 0.01%.