Stock market today: Nifty 50, Sensex end flat; mid, smallcaps outperform

Stock market today: Indian stock market benchmarks, the Nifty 50 and the Sensex, closed flat on Tuesday, 27 August, with shares of select heavyweights such as Reliance Industries, ITC, Hindustan Unilever, HDFC Bank and Titan as the top drags on them.

However, gains in shares of select blue chips, including Infosys, Larsen and Toubro, and ICICI Bank, saved the indices from losses.

The Nifty 50 closed just 7 points up at 25,017.75, while the Sensex ended 14 points up at 81,711.76.

On the other hand, the mid-and small-cap segments witnessed decent gains. The BSE Midcap and Smallcap indices rose half a per cent each.

The domestic market benchmarks ended lacklustre even as expectations of rate cuts by the US Fed in September remain a positive trigger for the market. Stretched valuations and geopolitical tensions are the key challenges weighing on market sentiment.

"The domestic market witnessed profit-booking near record highs. While the positive expectations regarding a potential rate cut by the Fed in September remain, the recent geopolitical tensions and rising crude oil prices have made investors cautious amid high valuations," said Vinod Nair, Head of Research, Geojit Financial Services.

According to Prashanth Tapse, Senior VP (Research), Mehta Equities, the trading session lacked momentum due to weak investor participation on account of Janmashtami and ended almost unchanged from its previous close.

"Weak US market cues and subdued Asian indices prompted local investors to book profit towards the fag-end, indicating that intraday volatility will continue amid growing geopolitical tensions and sluggish global growth,” said Tapse.

The overall market capitalisation of the BSE-listed firms rose to nearly ₹463 lakh crore, and nearly 360 stocks, including HCL Tech, Tech Mahindra, Sun Pharma, Bajaj Auto, IndiGo and Persistent Systems, hit their fresh 52-week highs in intraday trade on BSE.

Among the sectoral indices, Nifty FMCG fell 1.06 per cent, followed by Consumer Durables (down 0.64 per cent), Metal (down 0.61 per cent) and Auto (down 0.11 per cent).

On the other hand, Nifty Media surged 4.10 per cent, ending as the top gainer among sectoral indices.

Nifty Bank closed 0.26 per cent higher, while the Private Bank and PSU Bank indices closed with gains of 0.30 per cent and 0.04 per cent.

According to Shrikant Chouhan, the head of equity research at Kotak Securities, the larger market texture is bullish, but a fresh uptrend rally is possible only after the dismissal of 25,100.

"Above 25,100, the market could move up to 25,200-25,225. On the flip side, below 24,950, the selling pressure is likely to accelerate. Below this, the market could retest the level of 24,900-24,850," said Chouhan.

"On the daily timeframe, the index has made a Doji candlestick pattern near the record levels indicating indecisiveness between the bulls and bears. A firm close above 25,100 will push the index higher to the 25,200-25,300 zone. On the flip side, 24,870 will be considered as an immediate strong support," said Aditya Gaggar, the director of Progressive Shares.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.