The Sensex and the Nifty closed flat on Thursday as gains in shares of Bharti Airtel, Adani Ports, and Mahindra and Mahindra were largely offset by losses in those of Reliance Industries, HDFC Bank, and Titan.
Lacklustre global cues amid holiday-thinned trade kept sentiment low. Investors' focus now is on the US Federal Reserve's interest rate path next year and Donald Trump's tariff policies.
Sensex opened at 78,557.28 against its previous close of 78,472.87 and touched its intraday high and low of 78,898.37 and 78,173.38, respectively. It finally closed flat at 78,472.48.
The Nifty opened at 23,775.80 against its previous close of 23,727.65 and hit its intraday high and low of 23,854.50 and 23,653.60, respectively. The index settled at 23,750.20, up 23 points, or 0.10 percent, on the expiry day of December futures and options (F&O) contracts.
BSE Midcap index rose 0.11 percent, outperforming the benchmark Sensex. However, the BSE Smallcap index declined 0.24 percent.
"The domestic market remained flat throughout the day amidst holidays in peer markets and a lack of major domestic or global triggers," Vinod Nair of Geojit Financial Services observed.
"Concerns over FII outflows and the depreciating rupee persist, given the strengthening US dollar index and worries about potential adverse tariffs and rate cuts in 2025, holding the muted market trend," said Nair.
Among the sectoral indices, Nifty Auto, Healthcare, and Pharma indices rose almost 1 percent. On the flip side, Nifty Media fell over 1 percent. Nifty Bank and Private Bank indices slipped 0.12 percent and 0.16 percent, respectively, while the Nifty PSU Bank index rose 0.31 percent.
According to Aditya Gaggar of Progressive Shares, the bulls are finding it difficult to overcome the immediate hurdle of 23,850.
"After a firm opening, the Nifty 50 advanced under the leadership of the banking stocks, but the rally quickly fizzled out in the absence of any triggers. We need a convincing move on either side of a well-maintained range of 23,650-23,850," said Gaggar.
Chandan Taparia of Motilal Oswal Financial Services pointed out that the Nifty is hovering near its 200-day EMA (exponential moving average) while trading below its short-term moving averages as well. On the weekly chart, the index has formed a Doji candle, indicating support-based buying but with limited upside potential.
(By arrangement with livemint.com)