Nifty, Sensex Close Flat After Volatile Session As M&M, Infosys Cap Decline: Market Wrap

The benchmark equity indices extended fall to a third session as shares of heavyweights Reliance Industries and HDFC Bank weighed on them. The Indian stock market will remain closed on Wednesday on account of Gandhi Jayanti.

The Nifty ended 0.05% or 13 points lower at 25,796.90 and the Sensex closed 0.04% or 33.49 points lower at 84,266.29.

Intraday, both the Nifty and the Sensex fell around 0.2% to hit their respective lows of 25,739.20 points and 84,098.94 points.

For Nifty, Aditya Gaggar, Director of Progressive Shares, said, "A convincing move above today's high of 25,910 will confirm the divergence and in that scenario, the momentum may extend to 26,000; while on the flip side, a break below 25,750 will drag the index lower to 25,575."

"Nifty formed a doji pattern with a long upper shadow on the daily chart, indicating market indecision. Heavy call writing at 25,800 suggests it may act as strong resistance if sustained. Immediate support lies at 25,750, and a decisive break below this could push the index to 25,600/25,500. On the higher side, a move above 25,800 may propel Nifty towards 26,050, where sellers could become active again," said Rupak De, Senior Technical Analyst, LKP Securities.

Shares of Reliance Industries Ltd., HDFC Bank Ltd., Larsen & Toubro Ltd., Hindustan Unilever Ltd., and Bharti Airtel Ltd. weighed on the Nifty. While those of Infosys Ltd., Mahindra & Mahindra Ltd., Kotak Mahindra Bank Ltd., Tech Mahindra Ltd., and State Bank Of India capped the downside.

Sectoral indices were mixed at close. Nifty Media and Nifty IT rose the most.

Market breadth was skewed in favour buyers. Around 2,308 stocks rose, 1,655 stocks declined, and 91 stocks remained unchanged on BSE.

Broader markets outperformed benchmark indices. The BSE Midcap and Smallcap indices ended 0.27% and 0.56% higher, respectively.

On BSE, 12 sectors advanced, eight declined out of 20. The BSE IT rose the most, and the BSE Oil and Gas declined the most.

Ameya Ranadive, Technical Analyst, StoxBox, said that investors are continuing to digest Powell's comments on interest rates alongside domestic economic data and ongoing global geopolitical tensions, while also monitoring upcoming U.S. non-farm payrolls and domestic GST data to shape market sentiment in the coming days.