Indian markets close flat after early gains, Energy and Metal stocks shine

Traders witnessed some relief as markets ended the losing streak and closed flat with positive bias on Tuesday, February 23. The BSE Sensex, in the early trade, reached the day's high of 50,327 but ended up seeing all the gains wipe off as the banking stocks declined and weighed the index.

Rising bond yields and spike in Covid cases continued to keep the market sentiments negative even after the market showed green shoots in the early trade backed by the gains seen in the Asian markets. Further, the cash flow from foreign investors into Indian equities also saw a decline. Positive global news and good movements in prominent sectors could bring the market back on track, said market analysts.

Gaurav Garg - Head of Research - CapitalVia Global Research Limited, said, "Banking sector stocks were in focus as India Ratings revised its outlook on the overall banking sector from negative to stable for FY22. Going forward, global news flows and sector-specific developments will be key monitorable factors to impact investor sentiments."

The 30-Share pack BSE Sensex closed at 49,751.41, up 7.09 points, Nifty-50 closed at 14,707.80, adding 32 points. The Nifty Bank index dragged after gaining in the early trade and closed lower by 140 points.

Nifty Energy Index gained the most as shares of ONGC, GAIL and BPCL added over five per cent, three per cent and three percent respectively. On the broader front, BSE Smallcap and Midcap gained 195 and 145 points respectively.

Metal stocks provided a strong support to the markets on Tuesday, Tata Steel gained over six per cent and Jindal Steel gained over four per cent and accounted to top gainers of Nifty. Kotak Mahindra, Maruti Suzuki and Tata Motors were the top drags for the index.

Ruchit Purohit

BW Reporters The author is a Trainee Journalist at BW Businessworld based in Mumbai. He tracks the Markets and related news.