Market Ends With Marginal Loss; Budget Volatility Ahead

The Indian stock market traded in a fluctuated manner in the Tuesday trading session. The benchmark indices closed with a marginal loss after sharp fall in the early session. As the Union budget lingered market participants turned cautious before taking fresh bets.

The National Stock Exchange (NSE) Nifty 50 index ended 0.09 per cent lower at 24,509 whereas the S&P Bombay Stock Exchange (BSE) Sensex settled 102 points or 0.13 per cent lower at 80,502 levels on the closing bell. 

Nifty Moves

In the Nifty50 index, 30 stocks advanced in the positive territory, while 20 stocks ended in the red territory.

Among the winners, Grasim Industries traded with higher gains of 2.5 per cent followed by more than 2 per cent gain in NTPC, Ultratech Cement, HDFC Bank, Dr Reddy and Mahindra & Mahindra. 

Among the losers, Wipro bled more than 9 per cent as the IT firm reported decline in its first quarter profit. Kotak Mahindra Bank and Reliance also suffered losses of more than 3 per cent on its corporate earnings. 

Analyst Note

“After a sharp fall in early trades, markets were on a recovery mode and ended with marginal losses on profit-taking in banking, IT and realty stocks. Investors traded with caution as nervousness gripped in ahead of tomorrow's Budget. However, markets could see volatility during the Budget announcement on Tuesday and one may see sector-based action,” said Prashanth Tapse, Senior VP (Research), Mehta Equities. 

Sectoral Movement

In terms of sectoral performance, Nifty Bank rose only, whereas Financial Services gained 0.13 per cent. Further, PSU Banks moved 0.26 per cent higher. 

However, Metal, Pharma and Auto rallied more than 1 per cent, whereas Realty, IT and FMCG ended with gains. 

The more domestically focussed indices, Mid-cap and Small cap also traded with significant gains and ended 1.28 per cent and 0.9 per cent higher respectively.