The market snapped four consecutive days of winning spree and the benchmark indices settled with small losses after a range bound and lacklustre session as profit-booking emerged after the market hit a record high a day before.

The Sensex shed 59.36 points, or 0.18 per cent, to settle at 33,777.38, while the Nifty 50 fell 19 points, or 0.18 per cent, to settle at 10,444.20.

Among the sectors, realty stocks gained, while auto and bank stocks dropped. However, both mid- and small-cap stocks gained, with the BSE Mid-Cap Index rising 0.36 per cent and the Small-Cap Index gaining 0.79 per cent. Both the indices outperformed the Sensex.

Analysts outlook

According analysts, the slight dip in the market was due to profit booking and that would help keep the market in check for one-two sessions more. Traders should buy assuming the 10,400 support will hold and once the Nifty goes past 10,500, the market will see momentum picking up. There will be resistance though new highs will attract short covering and some momentum. So, trade with a long bias on a stock-specific basis and on the index buy on declines, wait for 10,500 to be cleared.

Things to look for

The market is closely watching the developments in Parliament. The Companies (Amendment) Bill, 2017, which seeks to bring about major changes in the Companies Act, 2013, was passed by the Rajya Sabha on Tuesday, by a voice vote. The bill, which was adopted by the Lok Sabha in July, will now have to receive the assent of the President to become law. The amendment seeks to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve the ease of doing business in the country.

The US Senate passed Republican tax bill in a 51-48 vote, sending the tax cut package back to the House of Representatives for a final vote later in the day.

Vinod Nair, head of research, Geojit Financial Services, said, “The market moved in a tepid manner after recording the all-time high, investors turned jittery ahead of RBI minutes. The market is gradually pricing the positive aura raised from the political front. Going forward, valuation and transition of reforms into earnings will be the key catalysts to fuel the market sentiment."

—Ashwin Punnen