Sensex closes 25 points higher, Nifty holds 10,400 level; banking, oil & gas stocks sink

The Sensex and Nifty closed marginally higher in volatile trade with consumer durables and metal stocks leading gain while oil and gas and banking stocks pulled the market lower. Sensex, which gained 861.18 points in the previous four sessions, closed 60 points or 0.18% higher at 33,940 level.

The gauge hit an intra day high of 33,981 and low of 33,750 in rangebound trade on Wednesday. Meanwhile, the Nifty closed 0.14% or 14.90 points higher at 10,417 level.

TCS (2.85%), Sun Pharma (2.50%) and Hindustan Unilever (1.73%)  were the top gainers on Sensex.

Adani Ports (2.42%), SBI (2.26%) and YES Bank (2.26%) were the top losers on the index.

Banking stocks fell after govt bond yields rose over 4 percent in four days. The BSE bankex closed 195 points or 0.69% lower to 28, 173 level. Bank Nifty too closed 128 points or 0.51% lower at 25,098 level.

Sameet Chavan, chief analyst, technical and derivatives at Angel Broking said, "As we had pointed out in the previous article, the index seems a bit tired and does not have the similar sort of strength we saw in last couple of weeks. This is quite evident as it has entered a strong resistance zone of 10400 - 10500. For the coming session, 10350 would now be seen as a key support for the Nifty. A sustainable slide below this would apply brakes on the recent relief rally. However, having said that if we look at today's recovery to close near day's high, it's an indication of index extending this move towards the recent swing high of 10478. Hence, first half an hour would be quite crucial and traders are advised to keep a close watch on this development."

Oil marketing companies IOC (6.41%), HPCL (7.42%) and BPCL (7.42%) closed in the red after reports said the government has asked these firms to absorb Rs 1 per litre price hike.  The OMCs were top three losers on the NSE.

The BSE oil and gas index fell 335 points or 2.23% to 14,715 level.

Market breadth was negative with 1195 stocks closing higher against 1506 stocks ending in the red.

Global markets

Shares were mixed in Asia on Wednesday, trading in a narrow range after overnight gains following conciliatory comments on trade by Chinese President Xi Jinping. Xi's pledge to cut tariffs on imported cars and improve intellectual property protection was seen as a step toward easing trade tensions.

Japan's Nikkei 225 stock index lost 0.5 percent to 21,687.10 and the Kospi in South Korea declined 0.3 percent to 2,444.22. Hong Kong's Hang Seng climbed 0.6 percent to 30,898.14 and the Shanghai Composite index surged 0.6 percent to 3,208.08. Australia's S&P ASX 200 dipped 0.5 percent to 5,328.70. Shares rose in Taiwan and in most Southeast Asian markets.