Sensex, Nifty bounce back from day's low to close flat; IT stocks lead recovery

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Benchmark stock market indices recovered to close marginally lower on Tuesday, after witnessing a decline in the afternoon session, driven by gains in IT sector stocks.

The S&P BSE Sensex lost 29.47 points to close at 75,967.39, while the NSE Nifty50 was down by 14.20 points to end at 22,945.30.

Aditya Gaggar, Director of Progressive Shares, said that after a muted start, the Index experienced a sharp decline, primarily driven by weakness in the Midcap and Smallcap segments, which led to a retest of 22,800 levels.

“However, from mid-session onwards, the Index started to recover from the lower levels, eventually finishing the trade at 22,945.30 with a marginal loss of 14.20 points,” he added.

On the sectoral front, IT and Energy sectors emerged as top performers, while FMCG and Auto sectors saw corrections of over 0.60%.

In the broader markets, Midcaps performed in-line with the benchmark Index, while Smallcaps underperformed with a loss of more than 1.50%.

“The continued underperformance of broader indices remains a key concern. We maintain our preference for large-cap and larger mid-cap stocks that are demonstrating relative strength within their sectors while advising against bottom fishing in the broader market,” said Ajit Mishra – SVP, Research, Religare Broking Ltd

NTPC emerged as the top performer, rising 3.19%, while Tech Mahindra gained 2.17%. Wipro advanced 2.01%, followed by Oil and Natural Gas Corporation which added 1.01%. Apollo Hospitals Enterprise rounded off the gainers with a 0.92% increase.

On the losing side, IndusInd Bank led the declines, falling 2.49%, while Trent Limited dropped 2.17%. Bharat Electronics Limited slipped 1.89%, and both UltraTech Cement and Mahindra & Mahindra declined 1.80% each.

Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market has experienced both profit booking and bottom-fishing amid persistent concerns over FII outflows and pressure on the INR. Small and mid-cap stocks continue to lag due to apprehensions about premium valuations.”