Sensex, Nifty end flat as high crude and Fed caution offset sectoral gains

The BSE Sensex slipped 8.08 points, or 0.01%, to close at 73,598.67. The NSE Nifty 50 edged down 3.45 points, or 0.02%, to settle at 22,749.75.

In Short

• Stock markets ended nearly flat amid volatile trading on Tuesday
• Auto, pharma, realty stocks gained; IT and private banks declined
• Crude oil prices high and Fed decision awaited, rupee steady at 95

Stock markets ended nearly flat on Tuesday after a volatile session, as elevated crude oil prices and caution ahead of the US Federal Reserve's policy decision later this week offset gains in auto, pharma and realty stocks. Buying in the broader market offered some support, even as selling in IT and private banking stocks weighed on the benchmarks.

The BSE Sensex slipped 8.08 points, or 0.01%, to close at 73,598.67. The NSE Nifty 50 edged down 3.45 points, or 0.02%, to settle at 22,749.75.

The Sensex moved between 73,179.41 and 73,762.98 during the session, while the Nifty traded in a range of 22,636.85 to 22,829.75.

Sectoral performance was mixed, with buying in auto, pharma, realty and media stocks helping limit losses. The Nifty Auto index rose 1.48%, while the Nifty Pharma index gained 1.91%. The Nifty Realty index advanced 1.94%, and the Nifty Media index jumped 3.66%.

The Nifty Metal index added 0.64%, while the PSU Bank index rose 0.41%. However, the Nifty IT index fell 0.26%, and the Nifty Private Bank index declined 0.73%. The FMCG index also slipped 0.42%.

Among Sensex constituents, Bharti Airtel was the top gainer, rising 3.18%. Trent gained 2.40%, while Maruti Suzuki advanced 2.28%. Power Grid rose 1.99%, and Eternal gained 1.66%.

On the losing side, Axis Bank fell 1.53%, TCS declined 1.42%, and ICICI Bank shed 0.96%. Infosys dropped 0.26%, while Bajaj Finance fell 0.76%.

BROADER MARKETS OUTPERFORM BENCHMARKS

Broader-market indices ended higher, indicating that buying extended beyond large-cap stocks. The Nifty 100 rose 0.22%, the Nifty 200 gained 0.37%, and the Nifty 500 advanced 0.58%.

Midcap and smallcap stocks performed particularly well. The Nifty Midcap 50 rose 0.90%, the Nifty Midcap 100 gained 1%, and the Nifty Smallcap 100 climbed 2.69%.

The Nifty MidSmall Healthcare index advanced 2.84%, while the Nifty MidSmall IT and Telecom index rose 0.43%. The Nifty Chemicals index gained 1.80%.

India VIX, a measure of expected market volatility, fell 3.65% to 16.53, indicating some easing in near-term market anxiety.

CRUDE OIL, RUPEE AND FED DECISION IN FOCUS

Crude oil prices remained elevated despite a modest rise during the session. Brent crude futures gained 0.46% to $116.34 per barrel, while US West Texas Intermediate crude rose 0.66% to $102.43.

The rupee ended little changed against the US dollar at 95.1150, as higher oil prices and persistent foreign equity outflows weighed on sentiment.

Elevated crude prices remain a concern for India because they can increase the import bill, add to inflationary pressures and squeeze corporate margins. Investors are also awaiting the US Federal Reserve's policy decision later this week for clues on the global interest-rate outlook.

Vinod Nair, Head of Research at Geojit Investments Limited, said Indian equities ended flat as high crude prices and caution ahead of the Fed decision overshadowed supportive global cues.

“Healthy Q2 earnings and robust domestic flows continue to provide a cushion against persistent foreign selling. However, Brent above $115 and a weaker INR pose risks to inflation, corporate margins and financing conditions,” Nair said.

He added that the market's direction would depend on earnings resilience, crude oil trends, developments in the West Asia crisis and the Fed's policy signal.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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