Sensex, Nifty end flat on profit booking in financials

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After a gap up opening Sensex and Nifty came off from their day’s high of 50,961 and 15,294 levels respectively, as investors started to book profits across board also selling pressure was seen in financial counters. At close, Sensex was down 14 points or 0.03% at 50,637, in contrast the Nifty was up 10 points or 0.07% at 15,208.

“Double rejections at 15250 yesterday, one each at the opening hour and the closing hour, had raised the possibility of a pullback today. So, even though, opening burst took Nifty shortly past 15250, it could not sustain, lending a weak bias through the first half of the day. This was mostly led by banks. However, positive global cues, as well as expectations of sectoral stimulus, held Nifty together, with metals as well as IT leading the charge. Besides the derivatives expiry, traders will also be eyeing the 3rd phase of peak margin rules, which calls for a higher margin requirement for intraday trades. Nevertheless, the technical structure looks set for taking Nifty well past 15600 in a fortnight,” said Anand James, Chief Market Strategist at Geojit Financial Services.

Gainers & losers

Asian Paints, Titan, Eicher Motors, JSW Steel and Britannia Industries were among the top gainers on the Nifty, while losers were HDFC Bank, HDFC Life, Reliance Industries, Axis Bank and Coal India.

Buzzing sectors

Nifty Bank, Private Bank, PSU Bank, and Financial Services indices lost in the rage of 0.80-1.35%. On the other hand, Nifty IT index jumped almost 1% while Nifty Auto, Nifty FMCG and Nifty Metal indices rose around 0.60% whereas Nifty Pharma index gained 0.40%.

Broader market

The broader market ended with mixed signals as BSE MidCap ended 0.31% lower while the BSE SmallCap index rose 0.26%.

Economy

Domestic rating agency ICRA on Monday, 24 May 2021, forecast a 2% GDP growth in the fourth quarter of 2020-21, and a 7.3% contraction for the full fiscal year. From a GVA (gross value added) perspective, the agency pegs Q4 growth at 3% and the full year contraction at 6.3%. According to the agency, the 2% projected GDP growth will help the economy avoid a double-dip recession as indicated by the National Statistical Office (NSO) for the fourth quarter.

Meanwhile, global forecasting firm Oxford Economics has lowered India’s growth projections for the current financial year to 9.1% from 10.2% because of the slow COVID-19 vaccination drive and the need to extend state-imposed lockdowns for a longer period to contain the spread of the virus.

Global markets

Shares in Europe and Asia advanced on Tuesday as easing inflation fears lifted global market sentiment.

In Asia, Singapore’s economy expanded by 1.3% year-on-year in the first quarter, data from the Ministry of Trade and Industry released Tuesday showed. The ministry also announced it would maintain Singapore’s GDP growth forecast for 2021 at “4 to 6%.”

U.S. stocks climbed on Monday as the technology sector and shares benefiting the most from the economic reopening led the advance. All eyes are on the US inflation measure, the personal consumption index, to be revealed this week.