The market closed flat amid consolidation and thin volumes on Tuesday despite positive global cues and correction in oil prices. The BSE Midcap marginally outperformed benchmarks, rising 0.4 percent.
The 30-share BSE Sensex rose 45.35 points to 26079.48 and the 50-share NSE Nifty advanced 3.80 points to 7928.95 while the market breadth was negative. About 1468 shares advanced against 1188 advancing shares on the Bombay Stock Exchange.
Analysts say the consolidation may continue in near term due to lack of major cues and thin volumes at FII desk. They see Nifty expiry of December derivative contracts at around 7900-8000 levels.
Considering the upcoming F&O expiry, volatility will tend to remain high in the next two sessions, says Jayant Manglik of Religare Securities.
Besides, Nifty has almost reached near to its crucial hurdle so traders should maintain extra caution in the long trades, he adds.
Private banking & financials and select auto stocks supported the market while FMCG and capital goods stocks lost ground.
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Reliance Industries continued to see buying interest after its subsidiary Reliance Jio launched 4G for its employees. Stock gained 0.65 percent.
HDFC Bank rebounded in last hour of trade, up 0.35 percent. The country’s second largest private sector lender has slashed base rate by 5 basis points to 9.30 percent.
Lupin ended marginally higher. The pharma major has received USFDA approval to market generic Femhrt tablets in US, which are used to treat postmenopausal osteoporosis.
HCL Technologies lost 1 percent after IDFC says the IT services provider may issue profit warning on back of Chennai floods.
State-run power equipment maker BHEL slipped 1.75 percent as Morgan Stanley says company’s biggest orderwin is at risk now post deferral of terms of reference for Yadadri thermal project due to ecological concerns.
Mahindra & Mahindra, Bajaj Auto, Hero Motocorp and GAIL gained more than 1 percent while Coal India lost a percent.
In broader space, Srei Infrastructure Finance surged 13 percent as BNP Paribas will pick up 5 percent stake in company against selling 50 percent stake in joint venture Srei Equipment Finance.
Tide Water Oil jumped 17 percent, continuing rally for fifth consecutive session. The stock surged more than 60 percent in five days ahead of last day for open offer.
Credit Analysis and Research (CARE) gained 6 percent after signing of memorandum of understanding with Japan Credit Rating Agency (JCR).
On the global front, European equities traded higher as sentiment got a boost from a mostly positive performance in Asian markets. France’s CAC and Germany’s DAX gained 1.5 percent followed by Britain’s FTSE. In Asia, Chinese, Japanese and Hong Kong markets closed 0.4-0.9 percent higher.
Crude oil prices rebounded after a 3 percent correction in previous session. Brent crude gained 0.44 percent at USD 36.78 a barrel (at 16 hours IST).