Closing Bell: Markets end flat after Nifty, Sensex hit record high for 4th straight session

Stock market news: Benchmark indices S&P BSE Sensex and NSE Nifty 50 ended little changed on Tuesday as traders booked profit after indices hit record high for the fourth session in a row. 

During the day's trade, both the 30-share S&P BSE Sensex and the broader NSE Nifty surged 0.27 per cent each to touch their life-time highs of 85,163.23 and 26,011.55 respectively. Both indices breached the psychological marks of 85,000 and 26,000 respectively during the day's trade.

While BSE Sensex ended 14.57 points lower at 84,914.04, the broader Nifty 50 ended 1.35 points higher at 25,940.40, which is the highest closing yet recorded by the 50-share index.

Dr. Praveen Dwarakanath, Vice President of Hedged.in, said, “Nifty has hit its all-time high again today and it has also crossed the 26000 psychological level. However, at closing it didn't sustain the all-time high level. Also, the Options writer's data for this week's expiry shows a strong resistance at 26000 levels, indicating the index is most likely to close near this level. On the downside, the support continues to be at the 25500 level in the index, while for intraday 25850 levels can act as an intermediate support.”

“Banknifty seemed to be weaker than Nifty today. At the closing, the daily candle is inching to close below the Bollinger band, indicating a halt in walking on the band. This shows signs of slowness in rally or even a possible reversal from present levels. On the daily chart, momentum indicators are in the over-bought zone, which also indicates a possible downside in the index. A break of 53700 levels, can trigger 53000 or even  52200 levels soon. Options writer's data for tomorrow's expiry shows larger call writing indicating a strong resistance at 54000 levels. In tomorrow's session, if the short covering of the puts above 54000 levels occurs, it can trigger a decent fall in the index,” Dwarakanath added.

China Stimulus Boosts Metals

The primary market driver on Tuesday was China, the world's largest producer of metals such as steel and coal. The country announced a range of stimulus measures to revitalise its sluggish economy, leading to a surge in metal stocks. The Nifty Metal index jumped 3 per cent, the highest among the 13 major sector indices, reaching a nearly two-month high.

Heavyweights in the metals space, including Tata Steel, Hindalco, and JSW Steel , gained between 0.5 per cent and 4 per cent, benefiting from the positive sentiment surrounding China’s stimulus.

According to analysts, China’s economic recovery could reduce the likelihood of Chinese steelmakers flooding international markets, including India, with low-priced steel, helping domestic producers. "The recovery in China will also strengthen export demand for metals," said Ajit Mishra, Senior Vice President of Research at Religare Broking.

Profit-Booking Limits Gains

Despite the strong performance in the metal sector, broader market gains were limited due to profit-booking in banking and consumer stocks. The Nifty FMCG index dropped 0.8 per cent as investors locked in profits after a three-day rally in which consumer stocks rose 2.6 per cent.

State-owned banks were also among the laggards, with the Nifty PSU Bank index slipping 0.9 per cent. Punjab National Bank fell 3.3 per cent after selling shares at a discount, leading the losses in the sector.

Fintech Sees Upturn

Paytm’s stock surged 4.5 per cent after Emkay Global upgraded the fintech company's rating to "add," citing a clear path to profitability for the company.

Seven of the 13 major sectoral indices closed higher, reflecting the mixed market sentiment as investors weighed the impact of global developments and local profit-booking pressures.