Indian stock markets failed to hold gains, ended flat after witnessing volatile session

MUMBAI: The Indian stock markets on Tuesday ended flat after witnessing a volatile session. The Indian stocks could not hold their continued upward movement in the trading session today.

At close, the BSE Sensex stood at 78,017.19, up 32.81 points or 0.04 per cent. The Nifty 50 ended at 23,668.65 up 10.30 points or 0.04 per cent.

All the sectoral indices at the National Stock Exchange (NSE) ended in red territory except the IT. The sectoral indices of auto, capital goods, consumer durables, metal, oil & gas, power, PSU bank, realty, and telecom were down 1-1.5 per cent.

At NSE, the stocks of UltraTech Cement, Trent, Bajaj Finserv, Infosys, and Grasim Industries emerged as the major gainers, while the losers were IndusInd Bank, Dr Reddy’s Labs, Adani Enterprises, Coal India, Adani Ports.

Midcap index at BSE Midcap index shed 1 per cent and Smallcap index was down 1.6 per cent.

Today, the regulator SEBI doubled the threshold of Beneficial Ownership (BO) disclosures from Rs. 25,000 crore to Rs. 50,000 crore.
This measure is designed to revitalize participatory notes (P-notes) and attract new offshore capital.

Notably, in August 2023, P-notes accounted for 2.28 per cent of the total FPI assets in India, which fell by 1.86% in December 2024.

“This decision could draw offshore funds with limited exposure to India, reinforcing capital inflows. However, it raises concerns about the potential volatility of the market due to increased speculative negotiation,” said VLA Ambala, Co-Founder of Stock Market Today.

Domestic benchmark indices opened higher on the back of strong global cues. However, after an initial spike, Nifty witnessed profit booking and ultimately settled the day on a flat note at 23,669.

The broader market underperformed Nifty, with the Nifty Midcap 100 and Nifty Smallcap 100 indices declining by 1.06 per cent and 1.56 per cent, respectively.

Meanwhile, the volatility index, India VIX, cooled off by 0.47 per cent to 13.64, indicating a decline in market volatility.

“Technically, on the daily chart, Nifty formed a red candle with a long upper shadow, indicating selling pressure at higher levels,” said Commenting on today’s markets, Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.

Similarly, the Bank Nifty index opened with a gap-up, faced profit booking, and settled on a negative note at 51,608. Technically, Bank Nifty encountered resistance near the 52,000 level and formed a red candle on the daily chart, indicating weakness.

On the downside, the 200-Days Simple Moving Average (200-DSMA), placed near 50,980, will act as key support for the index, he said. (ANI)