Indian stock market ends flat as consolidation phase continues
Mumbai, June 10 : The Indian stock market ended on a flat note on Tuesday as Sensex was down marginally by 53.49 points at 82,391.72 while the Nifty closed up by one point at 25,104.25.
Buying was seen in IT stocks during the session. The Nifty IT index gained 1.67 per cent. Pharma, FMCG, metal, media, energy and commodities indices closed in the green. Auto, PSU bank, financial services, realty and infra indices ended in the red.
Tech Mahindra, Tata Motors, Infosys, HCL Tech, UltraTech Cement, TCS, ITC, Axis Bank, Nestle and Adani Ports were the top gainers in the Sensex pack. Maruti Suzuki, Asian Paints, Bajaj Finance, Tata Steel, Bajaj Finserv, ICICI Bank and Reliance Industries were the top losers.
According to analysts, Nifty has sustained above the previous consolidation zone on the daily timeframe, indicating a continuation of the uptrend.
“This positive sentiment is likely to persist and the sentiment favour long trades as long as the index remains above the key support level of 24,850. On the higher side, the index may move towards 25,350 in the short term, with the potential for an extended rally if it breaks decisively above 25,350,” said Rupak De from LKP Securities.
Consolidation is the current mood, but improving liquidity, resilient earnings, and FPI interest keep the bulls hopeful, added Vikram Kasat, Head-Advisory, PL Capital.
Rupee traded flat to positive near 85.67 as last week's RBI’s 0.50 per cent rate cut with overall 100bps adds liquidity offsetting pressure from rising crude oil prices over the past week.
The US CPI data due this week will be a key driver for the dollar index, with the rupee expected to remain range-bound between 85.25 and 86.00, said experts.
Meanwhile, gold price stayed flat range near $3,315-3,320 and Rs 97,000 as market participants await US-China trade talks updates.
A strong tariff deal with both on positive agreements will push gold lower towards 95,000, whereas any dissatisfied comments can take price higher towards Rs 98,500 and $3360 odd. US CPI numbers in the week ahead shall also be keenly watched, said Jateen Trivedi from LKP Securities.