Markets End Flat as Banking, IT Stocks Drag, Smallcaps Rally 2.6%

Benchmark equity indices Sensex and Nifty closed nearly unchanged on Tuesday after a volatile trading session, as profit-taking in banking and information technology stocks, elevated crude oil prices and caution ahead of the US Federal Reserve’s policy decision weighed on investor sentiment.

The 30-share BSE Sensex declined 8.08 points, or 0.01 per cent, to settle at 73,598.67. During the session, it touched a high of 73,762.98 and a low of 73,179.41. The NSE Nifty slipped 3.45 points, or 0.02 per cent, to close at 22,749.75.

However, broader markets witnessed strong buying interest. The BSE SmallCap Select index surged 2.59 per cent, while the MidCap Select index gained 0.88 per cent, reflecting continued investor interest in smaller companies.

Among Sensex constituents, State Bank of India, Axis Bank, Tata Consultancy Services, Asian Paints, HDFC Bank and ICICI Bank were among the major laggards. Bharti Airtel, Trent, Maruti Suzuki and Power Grid were among the gainers.

Sectorally, banking and IT stocks remained under pressure, with the BSE Top 10 Banks index falling 0.99 per cent and the Private Banks index declining 0.78 per cent. In contrast, healthcare advanced 2.28 per cent, telecommunications rose 2.15 per cent, while utilities, power, realty and auto indices also registered gains.

Brent crude, the global oil benchmark, traded at USD 115.8 per barrel, amid concerns over energy supply disruptions following attacks on Saudi infrastructure.

Vinod Nair, Head of Research at Geojit Investments Ltd, said elevated crude prices and caution ahead of the US Fed decision overshadowed supportive global cues, although broader-market participation remained resilient.

Foreign Institutional Investors sold equities worth Rs 1,462.49 crore on Monday, according to exchange data. Investors are now awaiting Wednesday’s US Federal Reserve policy announcement for signals on interest rates and their implications for global capital flows.

In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 closed higher, while Shanghai and Hong Kong ended lower. European markets were trading in negative territory. On Monday, the Sensex had gained 482.92 points, while the Nifty rose 153.20 points.