Sensex, Nifty end a volatile session flat

Benchmark Indian equity indices ended almost flat with positive bias tracking high volatility amid concerns over the economic impact of the second wave of coronavirus infections in the country. Pharma stocks were in demand. The Nifty closed just shy of the 14,700 mark. Gains were capped amid a spike in Covid-19 cases in the country.

After swinging around 646 points during the day, the Sensex settled 42 points or 0.09% higher at 49,201. The broader market index Nifty advanced 45 points or 0.31% to 14,683.

Asian Paints was the top gainer in the Sensex pack, rising 4%, followed by Sun Pharma, HUL, HDFC, Dr Reddy’s, Nestle India and M&M.

On the other hand, PowerGrid, Axis Bank, IndusInd Bank, UltraTech Cement and ICICI Bank were among the laggards.

Domestic equities were quite volatile and gave up most initial gains as sharp spike in COVID-19 cases across the country and resultant mobility restrictions continued to weigh on investors’ sentiments, said Binod Modi, Head – Strategy at Reliance Securities.

Sectorally, the Nifty Pharma index rose 1.79%, Nifty Metal gained 1.5% & Nifty FMCG up 1%remained top gainers on the NSE today while the Nifty IT index was up 0.25%. The Nifty Bank slipped around 0.4% ahead of the RBI monetary policy committee’s outcome due tomorrow.

In the broader market, the BSE MidCap index gained 1% while the BSE SmallCap index rose 0.84%.

The market breadth was strong. On the BSE, 1680 shares rose and 1203 shares fell. A total of 188 shares were unchanged.

Economy:

RBI Governor Shaktikanta Das-led rate-setting panel Monetary Policy Committee (MPC) started its three-day deliberation on the next monetary policy on Monday. The Reserve Bank will announce the resolution of the MPC on Wednesday, 7 April 2021.

Global markets:

European shares advanced on Tuesday as trading resumed after the Easter holiday. Most Asian indices rose on Tuesday, 6 April 2021. Markets in Hong Kong were closed today for a holiday.

China’s services sector activity grew in March, according to a private sector survey released Tuesday. The Caixin/Markit services Purchasing Managers’ Index for March came in at 54.3, as compared to February’s reading of 51.5.

U.S. stocks rallied on Monday with the Dow and S&P 500 closing at record levels, as a round of strong economic data buoyed investor optimism for the economic reopening.

The Dow Jones Industrial Average rose 373.98 points to 33,527.19, a record closing high. The S&P 500 gained 1.4% to 4,077.91, also hitting a new record close. The tech-heavy Nasdaq Composite also climbed 1.7% to 13,705.59.

Treasury Secretary Janet Yellen on Monday pushed for a global minimum corporate tax in an effort to keep companies from relocating to find lower rates.

Meanwhile, a measure of U.S. services industry activity soared to a record high in March. The Institute for Supply Management’s non-manufacturing activity index jumped to a reading of 63.7 last month. That was the highest in the survey’s history and followed 55.3 in February.

(With inputs from agencies.)