Nifty Turns Flat, IT Stocks Under Pressure

The Maruti Suzuki stock ended 1.05 per cent higher at Rs 4,495.35 after the automaker saw 29.1 per cent growth in total sales for October at 1,34,209 units, compared with 1,03,973 units reported for the year-ago period. Uncertainty over Bihar election results was also a factor affecting investor sentiment adversely.

A barometer index of the Indian equity markets gained over 104 points during the late-afternoon trade session on Tuesday. Positive Chinese macro-economic data and enthusiastic response to Japan Post’s initial public offering (IPO) buoyed the Asian markets elsewhere.

The mid-cap index, however, continued its upward journey and ended 0.19 per cent higher while small-cap shed 0.33 per cent. It was higher by 17.15 points or 0.21 percent at 8,067.95 points.

The USA jobs data, to be released on Friday, is expected to give cues on whether the US Fed will raise interest rates or not in its December meeting.

The US Fed is slated to conduct its Federal Open Market Committee (FOMC) during December.

Gaurav Jain, director with Hem Securities said: “Last half hour of selling pressure dragged indices sharply lower, as investors seemed anxious of NDA (National Democratic Alliance) losing crucial Bihar election which can adversely affect the reform process”. However, investors remained cautious on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 449.84 crore on November 03, 2015. The benchmarking indices dragged by private banks, healthcare, technology and select oil stock, while auto shares extended support.

Rising for the second day, the 30-share index advanced by 207.20 points, or 0.78 per cent, to trade at 26,797.79 as all sectoral indices, led by auto, realty and metal, were trading in the positive zone with gains of up to 1.36 per cent.

Among the prominent decliners, GAIL, Reliance Industries, Sun Pharma, ICICI Bank and Tech Mahindra fell about 2 percent each.