Sensex, Nifty close flat, no positive triggers to recharge markets, say traders

• Markets were range bound due to lack of investors' participation and sluggish Asian market cues.
• The metals indices closed in the green with Hindalco and Tata Steel among top gainers.
• Jio Financial was amongst top gainers as Reliance Industries was a top loser in Tuesday’s session.
  

Indian benchmark indices, the Nifty and the Sensex, closed flat on Tuesday after opening the day on a positive note. The Sensex closed 79 points or 0.12% higher than previous day’s close at 65,075, while the Nifty closed 36 points or 0.19% higher at 19,342.

The markets were range bound due to lack of investors' participation and sluggish Asian market cues, according to market watchers.

“Currently, there are no fresh positive triggers to recharge the markets, hence investors are preferring to take selective bets. Also, FIIs taking out money from local shares has prompted traders to stay cautious,” said Shrikant Chouhan, head of research (retail), Kotak Securities.

Rupak De, senior technical analyst at LKP Securities said that he expects range-bound trading unless a clear breakout occurs on either side.

The metals indices closed in the green with Hindalco and Tata Steel among top gainers. “The metals sector rallied in anticipation of further green shoots from the Chinese government and central banks, aimed at improving the local economy. The benefits from festival demand were evident in sectors such as consumer durables, manufacturing, power, and real estate, said Vinod Nair, head of research at Geojit Financial Services.

Hero Moto and UPL were other top gainers in the Nifty50 index. Jio Financials also shed some index selling pressure to gain 5% in the day’s trade after four days of intense selling since it was listed on the bourses last week.

Investors remained unimpressed with the lack of information at the RIL AGM on Monday regarding value unlocking as the stock was the top loser falling 0.8%.

Bharti Airtel, which is expected to go for an IPO of its Uganda business, was also a laggard. HUL, Dr Reddy’s and Axis Bank were the other top losers in the Nifty50 pack.

Heavyweight stocks were muted compared to the sector-wise and mid and small-cap upsides. The chemical sector emerged as a clear winner due to improvements in product prices stemming from stability in the demand and supply scenario,” said Nair.

The rupee declined by 8 paise to settle at 82.71 against the US currency on Tuesday due to a rebound in crude oil prices and greenback in the global markets. Foreign fund outflows from the equity markets also weighed on the rupee sentiment, forex dealers said.

(With PTI inputs)