The Indian market closed flat for the second consecutive session, despite strong gains from global and Asian markets. Pressure from IT and pharma stocks kept the frontline indices near their previous day’s levels.
Banking stocks, on the other hand, posted notable gains during the session, as experts believed a sector rotation was underway from the pharma and IT sectors to banking. However, the significant rise in bank heavyweights failed to lift the indices higher.
Consequently, the Nifty 50 closed the session with a gain of 0.07%, finishing below the 25,000 mark at 24,998. Similarly, the Sensex wrapped up the day with a 0.18% gain, settling at 81,611.
Out of the 50 constituents in the Nifty index, 23 closed in the positive territory, with Kotak Mahindra Bank the way, rising 4.2%. Other notable performers included HDFC Bank, Bharat Electronics, IndusInd Bank , Maruti Suzuki, Tech Mahindra, Power Grid Corp, M&M, JSW Steel, NTPC and Axis Bank, all of which finished today’s session with gains exceeding 1%.
Mid and small-cap stocks displayed a mixed performance during the session. The Nifty Midcap 100 index closed 0.30% lower at 58,935 points, while the Nifty Smallcap 100 index finished in positive territory, gaining 0.19% to end at 18,900 points.
Meanwhile, Chinese stocks resumed their upward momentum in today’s session after a significant decline on Wednesday, which was prompted by investor concerns over the lack of details in the stimulus package. This renewed rally followed the Chinese central bank’s launch of a 500 billion yuan facility aimed at boosting capital markets.
China’s blue-chip CSI300 index closed the session up by 1%, while Hong Kong’s Hang Seng index soared over 3%. In September last week, the People’s Bank of China (PBOC) unveiled two new measures to support the capital market, including a swap program designed to facilitate easier access to funding for funds, insurers, and brokers to purchase stocks.
