Frontline indices the Sensex and the Nifty ended flat with a negative bias on September 27 as gains in shares of Reliance Industries (RIL), Infosys, TCS and ITC were offset by losses in those of banking and financial heavyweights such as ICICI Bank, HDFC twins, Kotak Mahindra Bank and SBI.
Mixed global cues amid concerns of longer and more aggressive rate hikes and a consequent global recession offered little to the market.
Sensex opened 231 points higher at 57,376.52 and touched an intraday high and low of 57,704.57 and 56,950.52 respectively. The index closed at 57,107.52, down 38 points, or 0.07% while the Nifty ended at 17,007.40, down 9 points or 0.05%.
The BSE Midcap index ended flat while the Smallcap index outperformed with a gain of 0.49%.
The 30-share pack Sensex settled with 18 gainers and 12 laggards. In terms of index contribution, ICICI Bank, HDFC Bank, HDFC, Kotak Mahindra Bank, SBI, Titan and Tata Steel remained the top drags on the Sensex. On the other hand, Infosys, Reliance Industries, TCS, ITC and IndusInd Bank were the top support.
Among the sectoral indices, BSE Oil & Gas, with a gain of 1.24%, emerged as the top gainer. BSE Energy, Teck and Telecommunication indices rose almost by a percent.
"In search of a safer dollar and elevated bond yields, foreign investors are withdrawing from Indian equities, resulting in the decline of the domestic market. In contrast to the recent trend of sector performance, banks and autos are exhibiting negative bias, while IT and pharma are showcasing resilience," said Vinod Nair, Head of Research at Geojit Financial Services.
After today's session, the benchmarks extended their losses into the fifth consecutive session. In the last five sessions, Sensex and Nifty have fallen 4.37% and 4.54%, respectively.
Investors have lost ₹13 lakh crore in the last five sessions as the overall market capitalisation of BSE-listed firms dropped to ₹270.4 lakh crore on September 27 from ₹283.4 lakh crore on September 20.
Crude oil benchmark Brent Crude traded near the $85 a barrel mark while the rupee inched up 4 paise to close at 81.58 per dollar.
"Crude prices are closing down, despite expectations that OPEC+ will take more action to cut production in the coming meeting, due to weakening global economy," said Nair.
Nifty formed a bearish candle on the daily chart.
Rupak De, Senior Technical Analyst at LKP Securities underscored the benchmark Nifty remained rangebound ahead of the RBI policy meet. The index briefly slipped below 16,950 as it failed to sustain at the lower level leading to a close above 17,000.
He said on the lower end, bulls have managed to protect the 200 DMA (daily moving average) on a closing basis. The momentum indicator is in a bearish crossover.
"The trend remains weak; however, the proximity to the crucial support may induce a pullback in the market. On the higher end, resistance is visible at 17,150-17,200. Above 17,200, the Nifty may move towards 17,500. On the other hand, a decisive fall below 16,950 may trigger a panic button," said De.
"On the derivatives front, the highest Call OI (open interest) was at 17,200 strike price followed by 17,300 strike prices while on the Put side, the highest OI is at 16,800 strike price. As Nifty remained below 17,150, weakness may be seen towards the 16,850-16,800 zone whereas the hurdle is placed at 17,250," Om Mehra, Technical Associate, Choice Broking said.
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