Mumbai, India (BBN) – The Sensex and Nifty ended nearly flat for a second straight session amid weak global markets, while losses in auto stocks led by Tata Motors offset gains in energy and IT stocks.
Brokers said domestic sentiment turned weak as WPI inflation for January jumped to 5.25 per cent from 3.39 per cent in the previous month, reports The Hindu Business Line.
The 30-share BSE index Sensex ended down by 12.31 points or 0.04 per cent at 28,339.31 and the 50-share NSE index Nifty closed down 12.75 points or 0.14 per cent at 8,792.30.
Barring TECk, IT and banking, all other BSE sectoral indices ended in the red.
Among them, auto index fell the most by 1.09 per cent, metal 0.93 per cent, realty 0.72 per cent and PSU 0.63 per cent.
On the other hand, TECk index was up 0.32 per cent, IT 0.09 per cent and banking 0.08 per cent.
Top five Sensex gainers were Bharti Airtel (+3.03 per cent), GAIL (+3.02 per cent), Reliance (+1.94 per cent), ONGC (+1.8 per cent) and ICICI Bank (+1.14 per cent), while the major losers were Tata Motors (-3.68 per cent), Hero MotoCorp (-2.02 per cent), HUL (-1.7 per cent), Maruti (-1.37 per cent) and Bajaj Auto (-1.34 per cent).
Foreign institutional inflows have been subdued after the government decided to ban higher denomination notes on November 8.
“There isn’t much action driving the market at the moment … It will take another quarter to recover (from demonetisation effect),” said Kaushik Mukherjee, Partner, BMR Legal.
Foreign investors have net purchased shares worth net $326.06 million so far this month and $319.67 million this year.
They had net bought stocks worth $2.90 billion in 2016, down from a net $3.27 billion invested in 2015.
State-run Hindustan Petroleum Corp’s shares fell as much as 3.5 per cent in their biggest intraday percent drop since December 15, 2016 after December-quarter average gross refining margin fell to $5.57 per barrel.
Stocks flat lined and the dollar dipped on Tuesday as caution set in before testimony from Federal Reserve chief Janet Yellen that may offer clues to the timing of the next US interest rate rise.
Adding to pressure on the dollar was the resignation of President Donald Trump’s national security adviser Michael Flynn, who quit over revelations he had discussed US sanctions against Moscow with the Russian ambassador to the United States before Trump took office, and misled Vice-President Mike Pence about the conversations.
Asian shares inched to 19-month highs on Tuesday as the potential for economic stimulus in the United States lifted the dollar, bond yields and Wall Street stocks.
The dollar was also bolstered by speculation the head of the Federal Reserve would underline the prospects of more US rate hikes when she testifies to Congress later on Tuesday.