Sensex, Nifty end flat as margin rules kick in

A volatile session on the bourses culminated near flat line on Tuesday as investor preferred to book profits after seven straight sessions of gains. That apart, a cut in GDP growth forecast by global agency Moody’s and a downtick in manufacturing activity kept market participants on the sidelines.
Sensex, Nifty end flat as margin rules kick in
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MUMBAI: A volatile session on the bourses culminated near flat line on Tuesday as investor preferred to book profits after seven straight sessions of gains. That apart, a cut in GDP growth forecast by global agency Moody's and a downtick in manufacturing activity kept market participants on the sidelines.

Earlier today, Moody's said it expects the damage to the economy from the second wave of COVID-19 and the ensuing lockdowns to be restricted to the April-June 2021 quarter. Taking the slowdown into account, it now expects India's GDP in the fiscal year ending March 2022 to grow at 9.3 per cent and at 7.9 per cent in FY23.

Moreover, data released by IHS Markit showed that domestic factory orders and production slowed to a 10-month low in May as most states restricted businesses amid localised lockdowns. The Manufacturing PMI slipped to 50.8 in May against 55.5 in April, making it one of the steepest fall.

Add to it, volumes remained thin as the 75 per cent peak margins norms come into effect from today.

Against this backdrop, the benchmark S&P BSE Sensex settled at 51,934 levels, down 2.5 points. The NSE's Nifty50, on the other hand, ended at 15,575 levels, down 8 points or 0.05 per cent. Earlier in the day, the 50-share index hit a fresh record peak of 15,660.75.

ONGC, Adani Ports, Bajaj Finance, SBI, Bajaj Auto, HUL, Tech M, and HDFC were the top gainers on the index today, up between 1 per cent and 4 per cent while JSW Steel, Tata Steel, ICICI Bank, Grasim, UltraTech Cement, SBI Life, Hero MotoCorp, and Infosys were the top laggards, down up to 2.3 per cent.

Participation in the broader market space also remained muted on Tuesday. The S&P BSE MidCap closed 0.01 per cent higher while the SmallCap index slipped 0.3 per cent.

Sectorally, barring the Nifty Media, Pharma, and IT indices, all other indices settled the day in the red. The Nifty Private Bank index was the top loser, down 1 per cent, while the Nifty IT index gained 0.11 per cent.

European stocks hit fresh record highs on Tuesday, as strong metal and oil prices boosted shares of big commodity companies, while data showed euro zone manufacturing activity expanded at a record pace of 63.1 levels in May. (IANS)

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