Markets recover from day’s low to end flat; FMCG, IT, realty stocks weigh

The Indian benchmark indices closed flat after recovering from the day’s low in a choppy session. The BSE Sensex ended at 80,710.76, down 7.25 points, while the NSE Nifty was marginally up by 0.03% to settle at 24,741.00.

Out of 30 Sensex companies, 14 advanced and 16 declined. In the Nifty index, 28 stocks gained while 22 declined. On the NSE, out of 3,121 stocks traded, 1,644 advanced, 1,370 declined, and 107 remained unchanged. Seventy-one companies hit a new 52-week high, while 49 touched a 52-week low. On the BSE, of the 4,260 stocks traded, 2,141 advanced, 1,952 declined, and 167 remained unchanged.

In the Sensex pack, Mahindra & Mahindra led the gains, rising 2.34%, followed by Maruti Suzuki, which gained 1.70%. On the NSE, Eicher Motors overtook M&M during the session, advancing 2.41%, while M&M rose 2.35%. Shriram Finance stood third, climbing 1.68%.

ITC recorded the steepest fall in the Nifty, dropping 1.92% after news of the government planning to impose an additional levy of over 40% GST on tobacco products rattled investors. Cipla followed, down 1.69%, while HCL Tech slipped 1.61%.

Sectoral indices showed a mixed trend. Nifty Auto outperformed, rising 1.25%, followed by Nifty Metal and Nifty Media, which added 0.68% and 0.53% respectively. Nifty FMCG and Nifty Realty, which had rallied in recent sessions, witnessed profit booking. In the FMCG index, only Tata Consumer Products closed in positive territory, while Varun Beverages slid 4%.

Nifty IT fell 1.4% as concerns over the U.S. economy weighed on sentiment, given that Indian IT companies derive a large share of revenue from the U.S. Signs of a softer U.S. job market raised worries about growth, impacting the sector.

The broader markets also made a marginal recovery, with the Nifty Smallcap 50 dipping just 0.03%, while the Nifty Midcap 50 inched up 0.14%.

“Following heavy selling pressure in the early hours, the indices staged a gradual recovery during the second half, led by strength in heavyweight Reliance Industries. Post the GST Council meeting, investor sentiment remained mixed, with profit booking in select sectors further contributing to the day’s volatility,” said Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities.