Nifty, Sensex Resume Declines After One-Day Breather: Market Wrap

Benchmark equity indices were back in the red after one session of ending higher as they erased gains in the last hour to close near Wednesday's lowest levels.

Intraday, the indices had risen as much as around 1.2% after the RBI's monetary policy meeting changed the liquidity stance to 'neutral' from 'withdrawal of accommodation earlier, signalling a potential rate cut. The weekly futures contract of Nifty Bank closed flat on expiry day.

The Nifty ended 0.12% or 31.20 points lower at 24981.95 and Sensex lost 0.21% or 167.7 points down at 81467.10.

Aditya Gaggar, Director of Progressive Shares, said that the resistance level, i.e., 25,200, acted very well in today's trade.

"After a firm opening, the index was seen compounding its gains for the major part of the day but in the last session, a steep fall in the select heavyweights dragged the index lower and erased all its gains," he said.

"Support and resistance are very well-placed, i.e., 24,750 and 25,200, and breakout on either side will provide a clear picture."

Shares of Reliance Industries Ltd., Nestle India Ltd., HDFC Bank Ltd., ITC Ltd., and Larsen & Toubro Ltd. dragged the Nifty.

While those of Infosys Ltd., Bharti Airtel Ltd., ICICI Bank Ltd., State Bank of India, and Axis Bank Ltd. cushioned the fall.

Most sectoral indices end higher; Nifty FMCG fell the most and Nifty Realty was the top gainer.

Market breadth was skewed in favour of buyers. Around 2,716 stocks rose, 1,224 stocks declined, and 106 stocks remained unchanged on BSE.

Broader markets outperformed benchmarks. The BSE Midcap and Smallcap indices ended 1.06% and 1.21% higher, respectively.

On BSE, 17 sectors advanced, three declined out of 20. BSE Realty rose the most, while BSE FMCG declined the most.