Nifty, Sensex Trade Lower As IT Stocks, HDFC Bank, ICICI Bank Drag: Midday Market Update
Indices were trading sideway with the Nifty falling 0.26% and the Sensex slipping 0.33% due to lack of fresh cues.
The benchmark equity indices erased all early gains to trade lower through midday on Wednesday as Infosys Ltd., HDFC Bank Ltd. and ICICI Bank Ltd. dragged.
As of 11:58 a.m., the NSE Nifty 50 was 57.65 points or 0.26% down at 21,871.75, while the S&P BSE Sensex was 239.98 points or 0.33% lower at 71,946.11.
The Nifty hit intraday high of 22,053.30 and the Sensex touched 72,559.21 so far in the day.
"In recent sessions, the Nifty has largely traded sideways, reflecting trader uncertainty about its next move," Shrey Jain, chief executive officer of SAS Online, said.
The Nifty Bank lacks a clear trend, awaiting a breakout to determine its direction. Support is established around 45,500, with immediate resistance at 46,000, according to Jain.
A break above 46,000 could signal a move towards 46,500, with significant open positions in the 46,000, potentially leading to short covering and upside momentum, Jain said.
Infosys, HDFC Bank, ICICI Bank, Tata Consultancy Services Ltd. and Power Grid Corp. weighed on the indices.
State Bank of India, Axis Bank Ltd., Reliance Industries Ltd., Bajaj Finance Ltd. and HDFC Life Insurance Co. limited the losses.
Six out of the 12 sectors on the NSE were trading in the red, with the Nifty IT being the top loser. The Nifty Oil & Gas and Metal surged to a lifetime high.
The broader markets outperformed the benchmark indices as the BSE Midcap rose 0.20% and the Smallcap gained 0.37%.
Fourteen out of the 20 sectors on the BSE gained, while Information Technology fell the most.
The market breadth was skewed in favour of the buyers as 2,101 stocks rose, 1,625 fell and 142 remained unchanged on the BSE.
