Sensex, Nifty Trade On Flat Note; IT Stocks Gain, Banking Shares Subdued

The Indian equity benchmarks were trading on a flat note on Wednesday as gains in information technology, media and metal shares were offset with subdued trend in banking and financial services shares amid mixed trend in other Asian markets. The Sensex was up 50 points or 0.1 per cent at 59,056 and Nifty 50 index was rose 20 points or 0.12 per cent to 17,582 by 9:24 am.

Stocks in Asia found support and U.S. futures lifted in relief on Wednesday after teetering developer China Evergrande said it would pay some bond interest due on Thursday, allaying fears of an imminent and messy collapse that had spooked investors.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3 per cent lower mid-morning. Japan’s Nikkei fell 0.6 per cent, while Australian shares rose 0.7 per cent. Hong Kong markets were closed for a holiday.

Back home, eleven of 15 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Media index’s over 7┬áper cent gain.

Nifty Realty, PSU Bank, IT, Consumer Durables and Auto indices also rose between 0.5-1.5 per cent each.

On the other hand, Nifty Bank, Financial Services, FMCG and Private Bank indices were trading on a subdued note.

Mid- and small-cap shares were outperforming their larger peers as Nifty Midcap 100 and Nifty Smallcap 100 indices rose 1 per cent each.

Tata Motors was top Nifty gainer, the stock rose 3.23 per cent to Rs 312. NTPC, Tech Mahindra, Hindalco, Adani Ports, Bharat Petroleum, IndusInd Bank, Mahindra & Mahindra, Indian Oil, State Bank of India and JSW Steel also rose between 0.6-1.7 per cent.

On the flipside, Nestle India, HDFC Bank, Axis Bank, Hindustan Unilever, HDFC, Hero MotoCorp, Dr Reddy’s Labs, Divi’s Labs, Larsen & Toubro and UPL were among the laggards.

The overall market breadth was extremely positive as 1,864 shares were advancing while 699 were declining on the BSE.

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