Mumbai, India (BBN)-The Sensex and Nifty ended flat as positive sentiment from upbeat global economic data was offset by caution ahead of corporate results starting later this month and the government’s annual budget in early February.
The 30-share BSE index Sensex closed lower by 10.11 points or 0.04 per cent at 26,633.13 and the 50-share NSE index Nifty ended down 1.75 points or 0.02 per cent at 8,190.50, reports The Hindu Business Line.
Among BSE sectoral indices, realty index gained the most by 2.44 per cent, followed by consumer durables 1.21 per cent, TECk 1.04 per cent and IT 0.9 per cent.
On the other hand, banking index was down 0.82 per cent, oil & gas 0.55 per cent, PSU 0.26 per cent and metal 0.14 per cent.16
Top five Sensex gainers were Bharti Airtel (+3.47 per cent), Bajaj Auto (+2.59 per cent), Wipro (+1.76 per cent), Tata Motors (+1.09 per cent) and Hero MotoCorp (+0.9 per cent), while the major losers were Reliance (-1.99 per cent), ICICI Bank (-1.26 per cent), Cipla (-1.05 per cent), HUL (-1.04 per cent) and Power Grid (-0.98 per cent).
Shares in the US and Asia were boosted by a round of factory surveys from China, the euro zone and United States that pointed to more momentum in the global economy.
US factory activity accelerated to a two-year high in December, while manufacturing in the euro zone grew at its fastest pace in five years and China’s factory activity was better than expected.
“While positive global data could help strengthen foreign inflows which in turn could support market gains, the market is unlikely to find a big direction for now because key focus is on the budget session and upcoming earnings season,” said Siddhartha Khemka, head of research at Centrum Wealth.
Corporate results are scheduled to start next week and the government’s budget is due on February
India’s services industry ended 2016 on a sour note, contracting for a second month in a row in December as orders shrank amid a severe cash shortage, according to a private business survey on Wednesday.
A report by SMC Global said: “US equities saw strong gains as strong manufacturing data fuelled confidence in the US economy as US dollar extended gains.
Global equities rally extended into the New Year as data from the US, China and Europe boosted optimism for global growth.
Japanese equities gained close to 2 per cent in the first trading session of 2017 in Asia, after strong economic data fuelled gains in the US dollar against weaker yen.
Chinese shares were lower, despite the overall cheer in Asian markets.
US manufacturing expanded at the fastest pace in two years led by the biggest pickup in new orders since 2009.
The Purchasing Managers Index for December rose to 54.7, its fourth straight monthly advance, according to data.
Orders for exports rose at its fastest pace since May 2014 while the addition of staff grew at the quickest rate since mid-2015.
The positive economic data helped the US markets snap a three-day losing streak.
The S&P 500 Index posted its biggest gains in four weeks while the Dow Jones Industrial Average gained over a 100 points to head closer towards the 20,000 mark. The NASDAQ Composite Index advanced 0.85 per cent.”