PremiumNEW DELHI: Indian stock markets closed largely unchanged on Monday in a session marked by volatility. The 30-share Sensex ended 51.10 points lower at 62,130.57, recovering from a 500-point fall earlier in the day, while the broader NSE Nifty closed at 18,497.15, a tad higher.
Investors mostly stayed on the sidelines ahead of the release of retail inflation data and the US Fed's meeting later this week, according to Shrikant Chouhan, head of equity research (Retail), Kotak Securities Ltd. Clarity will emerge post the US Fed meeting, which would determine the near term trend.
The Nifty had opened lower tracking subdued global cues but a recovery in banks stocks, along with gains in metals, and oil and gas supported. Bank Nifty rose 0.20% to close at an all-time high. However, a continued sell-off IT stocks weighed on markets.
“The undertone remains bullish within the range and one should keep a buy-on-dip approach with immediate support seen at the 43,400 level. The Bank Nifty index is likely to witness consolidation in the range of 43,000-44,000 where the highest amount of open interest is built up on the put and the call side respectively," said Kunal Shah, senior technical analyst at LKP Securities.
“The index has to break the range on either side for trending moves which may be seen after the key event of the fed policy due on Wednesday," added Shah.
Global markets were also on a weak footing amid a slew of central bank meetings where they are expected to further hike rates to tame inflation, said Vinod Nair, head of research at Geojit Financial Services.
The US dollar gained on hawkish sentiments amid higher US PPI data and safe-haven appeal amid risk aversion in global markets, said Anuj Choudhary, research analyst at Sharekhan. The rupee fell about 0.32% , with sustained FII outflows weighing on the local currency.
Choudhary expects rupee to trade with a negative bias ahead of retail inflation numbers scheduled to be announced later today.
India's domestic consumer price inflation (CPI) likely cooled to a nine-month low of 6.40% in November, but stayed above the RBI's 2-6% tolerance range for the tenth straight month, according to a Reuters report.