Benchmark indices had a range-bound trading session on Tuesday, with Capital Goods, Power, and FMCG shares seeing buying interest, while IT and financial shares remained out of favor.
The S&P BSE Sensex started from a low of 65,165 but swung into the positive zone during the day. It reached a high of 65,333, up 198 points from the day’s low. However, the Sensex erased its gains and closed flat at 65,220, up only four points.
The NSE Nifty 50 also witnessed a similar trading pattern. It hovered above the 19,400-level for most of the session but eventually closed at 19,396, up three points.
During the session, the de-merged Reliance entity – Jio Financial Services – remained locked at the 5% lower circuit for the second consecutive day. The stock settled at Rs 239.20 on the BSE. As a result of the two successive lower circuits, BSE has postponed the removal of Jio Financial from all its indices by another three days to August 29.
Among other stocks, Bajaj Finserv, SBI, and ICICI Bank were the visible laggards. On the positive front, ITC and NTPC gained around 1.5% each. Mahindra & Mahindra, Wipro, and Larsen & Toubro were the notable gainers in the Sensex 30.
The broader markets outperformed the benchmark indices on Tuesday. The BSE MidCap and SmallCap indices were up 0.9% each. Insurance-related shares such as GIC and New India Assurance rallied up to 6% among MidCaps.
Globally, the US markets ended mixed overnight. The NASDAQ Composite and the S&P 500 indices snapped a four-day losing streak to gain up to 1%, while the Dow Jones declined 0.1%. The US 10-year treasury yields reached a 16-year high of 4.35% as investors look towards the Jackson Hole conference later this week for further interest rate guidance.
In Asia-Pacific markets, on the other hand, there was largely a positive sentiment in the early trading session on Tuesday. The Nikkei 225, Kospi, and Topix indices surged up to 0.8%.
In the commodities market, prices of Brent Crude and WTI Crude hovered around $84 per barrel and $80 per barrel, respectively.