Markets retreat to settle flat after a volatile session

Mumbai: Benchmark stock indices Sensex and Nifty closed largely unchanged in a highly volatile trade on Tuesday amid profit-taking in IT and blue-chip banking shares, elevated crude oil prices and caution ahead of the US Federal Reserve's policy decision.

The 30-share BSE Sensex slipped 8.08 points, or 0.01 per cent, to close at 73,598.67, with 17 constituents higher, 12 lower and one unchanged. During the day, it hit a high of 73,762.98 and a low of 73,179.41. The 50-share NSE Nifty skidded 3.45 points, or 0.02 per cent, to end at 22,749.75.

However, broader market indices rallied on strong buying interest, with the smallcap index gaining 2.59 per cent and the BSE midcap nearly 1 per cent. Sectorally, realty, pharma and auto shares advanced, while banking, financials and IT stocks declined.

From the 30 Sensex firms, State Bank of India, Axis Bank, Tata Consultancy Services, Asian Paints, HDFC Bank and ICICI Bank were among the major laggards. Bharti Airtel, Trent, Maruti and Power Grid were among the winners.

"Indian equities ended flat amid a volatile session, as elevated crude prices and caution ahead of the US Fed policy decision overshadowed supportive global cues. Profit booking dragged IT and private banks, while pharma, autos, PSU banks and realty gained, with resilient broader-market participation pointing to selective domestic risk appetite," Vinod Nair, Head of Research, Geojit Investments Limited, said. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,462.49 crore on Monday, according to exchange data.

"Attention now turns to Wednesday's US Federal Reserve policy decision, with investors looking for signals on the interest-rate outlook and their implications for global capital flows. The market's ability to sustain its recovery will depend on whether external pressures ease and buying interest broadens beyond select sectors," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Among the key macro factors, Brent crude remained elevated near USD 115 per barrel, close to a six-month high, amid renewed concerns over energy supply disruptions following attacks on Saudi infrastructure, he added. The BSE SmallCap Select index jumped 2.59 per cent, while MidCap Select index was up 0.88 per cent.

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