The Indian equity markets on Tuesday closed on a flat note as profit booking and caution ahead of key global events capped gains.The key indices inched up during the intra-day trade on the back of hopes that the Reserve Bank of India (RBI) will ease its key lending rates during the monetary policy review slated for Wednesday.However, caution over the RBI's growth guidance, ensuing political developments in Italy after last Sunday's referendum and the upcoming policy review from the European Central Bank (ECB), subdued investors' risk-taking appetite. The wider 51-scrip Nifty of the National Stock Exchange (NSE) inched up by 14.40 points or 0.18 per cent to 8,143.15 points.The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 26,403.62 points, closed at 26,392.76 points -- up 43.66 points or 0.17 per cent from the previous close at 26,349.10 points.
The Sensex touched a high of 26,502.43 points and a low of 26,356.02 points during the intra-day trade.The BSE market breadth was tilted in favour of the bulls -- with 1,535 advances and 1,129 declines.On Friday, the equity markets closed on a higher note, as investors' sentiments were buoyed on hopes of an easing of the monetary policy and positive global cues.The barometer index was up 118.44 points or 0.45 per cent, while the NSE Nifty rose by 41.95 points or 0.52 per cent."Markets ended higher on Tuesday for the second consecutive session on the back of uppish Asian markets. European indices like the CAC and DAX too are in positive territory," said Deepak Jasani, Head of Retail Research at HDFC Securities."Market participants, however, seemed to be jittery ahead of the RBI policy, as there was a sell-off from the highs of the day in the afternoon session that curbed the gains."According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, CNX Nifty failed to sustain at higher levels and witnessed downside in second half of the session mainly due to profit booking. "IT stocks traded firm, while banking, pharma and aviation stocks traded with bearish sentiments," Desai said.
"Auto, oil-gas, textile, media-entertainment stocks traded with firm sentiments, while FMCG stocks traded volatile due to profit booking at higher levels."Desai added that bearish USD/INR futures supported Nifty to recover from lower levels.The Indian rupee appreciated by 32 paise to close at 67.90 against a US dollar from its previous close of 68.22 to a greenback.In terms of investments, provisional data with exchanges showed that the foreign institutional investors (FIIs) bought stocks worth Rs 161.80 crore, while the domestic institutional investors (DIIs) divested scrip worth Rs 164.68 crore.Sector-wise, the S&P BSE oil and gas index surged by 137.53 points, followed by the metal index, which gained 78.04 points, and the capital goods index, which rose by 42.07 points.
On the other hand, the S&P BSE consumer durables index receded by 80.62 points, the automobile index fell by 75.97 points, and the FMCG index was lower by 62.05 points.Major Sensex gainers on Tuesday were: HDFC, up 2.07 per cent at Rs 1,243.80; Tata Steel, up 1.16 per cent at Rs 418.35; ONGC, up 1.08 per cent at Rs 298.50; Adani Ports, up 1.04 per cent at Rs 272.05; and State Bank of India (SBI), up 0.95 per cent at Rs 259.15.Major Sensex losers were: Hindustan Unilever (HUL), down 1.24 per cent at Rs 835.35; Maruti Suzuki, down 1.20 per cent at Rs 5,141.70; Power Grid, down 1.11 per cent at Rs 182.90; Sun Pharmaceuticals, down 0.99 per cent at Rs 706; and ITC, down 0.95 per cent at Rs 230.25.