Market Ends Flat as Midcaps and Smallcaps Shine

Stock Market Update: Sensex and Nifty 50 End Flat, Midcaps and Smallcaps Shine

The stock market witnessed a flat closing today, with the Sensex and Nifty 50 trading in the positive zone before succumbing to profit booking towards the end of the session. The market sentiment was influenced by the upcoming Union Budget, new government policy decisions, and weak global cues.

Major European markets like the UK’s FTSE, France’s CAC 40, and Germany’s DAX experienced a downturn following the announcement of a snap election in France. Additionally, caution ahead of the US consumer price inflation data and Federal Reserve policy decision added to the lacklustre performance of the market.

While the Sensex opened 191 points higher and touched an intraday high, it ended 33 points lower at 76,456.59. Similarly, the Nifty 50 opened higher, reaching an intraday high before settling with a slight gain at 23,264.85.

However, the midcap and smallcap segments continued to outperform, with the BSE Midcap index rising by 0.74% and the Smallcap index by 0.95%.

In the Nifty 50 index, ONGC, Tata Motors, and Larsen and Toubro emerged as the top gainers, while Kotak Mahindra Bank, Divi’s Labs, and ITC closed as the top losers. Sector-wise, Nifty Bank and Private Bank indices witnessed a decline, while Nifty Media, Oil & Gas, and Realty sectors recorded gains.

Experts believe that the market’s current pause is temporary and traders should maintain a positive bias with a stock-specific trading approach. Agriculture-related and chemical stocks are gaining interest, and participants are advised to adjust their positions accordingly.

In terms of technical analysis, the short-term resistance and support levels for Nifty 50 were highlighted, suggesting potential breakout directions. Market sentiment is expected to remain sideways unless there is a decisive breakout in either direction.

Overall, the market is stabilizing after recent fluctuations, with attention shifting to global and domestic indicators. Investors are closely monitoring key policy decisions and inflation data to determine the trajectory of rate cuts.

In conclusion, despite the flat closing of the Sensex and Nifty 50, the midcap and smallcap segments continue to exhibit strength, providing opportunities for investors in the current market scenario. With upcoming events and decisions on the horizon, the market is poised for further developments in the coming days.