Markets end flat; mild profit booking breaks stellar rally
The Indian equity markets' stellar rally on the back of the government's corporate tax break announcement was broken on Tuesday as the key indices ended flat on the back of a minor profit booking bout.
The S&P BSE Sensex closed at 39,097.14, higher by 7.11 points or 0.02 per cent from the previous close of 39,090.03 points. It had touched an intra-day high of 39,306.37 and a low of 38,913.06 points.
Similarly, the Nifty50 on the National Stock Exchange (NSE) closed flat. It ended the day's trade at 11,588.20, lower by 12 points or 0.10 per cent from its previous close.
On broader market level, the BSE Small Cap Index outperformed, the Sensex and Nifty. However, the market breadth was negative on both the key indices.
Sectorally, the top gainers were the BSE IT and Energy indices, whereas the losers included BSE Capital Goods, Metal, Bankex and Realty indices.
"Technically, while the Nifty has taken a breather, the underlying trend remains up," said Deepak Jasani, Head Retail Research of HDFC Securities.
"Further upsides are likely once the immediate resistance of 11,655 is taken out. Crucial support to watch for resumption of weakness is at 11,539."
According to Geojit Financial Services Head of Research Vinod Nair: "After a massive rally investors took some money out which led the indices to trade range bound. Sentiment factor is largely positive after the stimulus measures to attract allocation of more funds to mid and small caps."
"Bond yield inched higher despite FMs comment on retaining fiscal target of 3.3 per cent for FY20 and no reduction in spending. While governments' second half borrowing plan will be keenly watched to get a clearer view on direction."
On Monday, the Sensex gained 1,075 points, taking its two-day advance to nearly 3,000 points as investors continued to pump in money in hopes of improvement in corporate earnings after the government slashed corporate tax rates last week.IANS