Sensex Ends Flat as Nifty Hedges Up Amid Mixed Global Cues

The Indian benchmark indices Sensex and Nifty closed flat on Monday despite early gains. Market mixed signals came from reduced windfall taxes on crude oil and global positive cues. Sensex dipped 12 points to 80,425, while Nifty gained 31 points reaching 24,573. Broader markets showed positive momentum, but sector performance was mixed.

The benchmark indices Sensex and Nifty ended flat on Monday despite a promising start driven by reduced windfall taxes on crude oil and favorable global cues. Sensex closed 12 points lower at 80,425, while Nifty edged up by 31 points to 24,573. Nifty Bank fell 149 points to 50,368, whereas the Midcap Index gained 105 points to 57,761.

The key gainers in the Nifty 50 were Hindalco, BPCL, Tata Steel, Shriram Finance, and LTIMindtree. In contrast, M&M, Bajaj Auto, Axis Bank, IndusInd Bank, and Tata Motors were prominent decliners. Broader market indices remained positive with the BSE MidCap rising 0.53 per cent and the BSE SmallCap advancing 1.13 per cent.

Sector performance showed mixed results; the Nifty Auto index declined by 0.9 per cent, and the Nifty Private Bank index fell by 0.5 per cent. However, the Nifty Metal and PSU Bank indices rose by 1.87 per cent and 1.2 per cent, respectively. Ajit Mishra, SVP, Research, Religare Broking Ltd, noted, 'Global market recovery is boosting the indices, but the lag in banking shares is slowing momentum.'

Vinod Nair, Head of Research, Geojit Financial Services, cited profit booking in auto stocks due to slowing demand as a factor for the Indian market's inability to hold early gains. 'Oil stocks, however, gained with reduced windfall taxes on crude oil,' he added. Positive US economic data lessened recession fears, while a weaker dollar supported rate cut expectations in the September FOMC meeting.

On the global front, US unemployment claims fell to 227,000, and the government deficit rose to USD 1.5 trillion in the first ten months of FY 2024. The UK's GDP grew by 0.6 per cent QoQ in Q2, with CPI inflation inching up to 2.2 per cent in July. The Euro Area saw a 3.9 per cent YoY fall in industrial production for June, while Japan's economy expanded at an annualized 3.1 per cent in Q2. China reported a retail sales increase of 2.7 per cent and a 5.1 per cent rise in industrial production for July. Investors will focus on US Fed chief Jerome Powell's upcoming speech at the Jackson Hole symposium later this week.

(With inputs from agencies.)