The benchmark BSE Sensex closed flat as investors turned cautious ahead of corporate results amid soaring global crude prices and a subdued trend in European markets. After a higher opening at 33,913.55, the Sensex advanced to hit the day’s high of 33,964.14. But profit-booking towards the middle of the session erased gains, dragging the index to a low of 33,703.37.
The 30-share barometer closed at 33,812.26, down by just 0.49 points. The gauge had lost 244.08 points in the first trading session of 2018 on Monday. The NSE Nifty, however, ended a shade higher by 6.65 points or 0.06 per cent at 10,442.20 after moving between 10,495.20 and 10,404.65.
“Market remained subdued despite positive momentum in Asian market amid concern on introduction of long-term capital gain tax and ahead of Q3 earnings season,” Vinod Nair, Head of Research, Geojit Financial Services Ltd, said. Mid and small cap underperformed due to current excessive valuation while positive December auto sales numbers attracted investors to the sector, Nair said. The upcoming corporate result season, beginning later this week and the approaching Union Budget kept investors on their toes, who indulged in selling activity.
“On Monday’s choppiness did dominate early proceedings, and supports seemed to be giving away, but healthy core sector and manufacturing PMI growth, along with decent auto sales numbers rejuvenated. The approach of Q3 earnings season should mean that investors are less likely to rush into mass liquidations,” Anand James, Chief Market Strategist, Geojit Financial Services Ltd, said.
Stocks failed to hold onto gains after positive core industry data. Infra sector grew at the fastest pace in more than a year at 6.8 per cent in November 2017 on the back of robust performance in segments like refinery, steel and cement. Also, the Nikkei India PMI data showed that Indian manufacturing activity improved at the strongest rate in five years in December driven by significant increase in new orders.