Profit booking, macro-data subdues market; banking stocks tank

MUMBAI: Profit booking, along with disappointing macro-economic inflation data, subdued the key Indian equity indices on Tuesday. However, a steady inflow of foreign funds, along with a late hour buying spree in auto and metal stocks, led to a gradual recovery which allowed the indices to close on a positive-to-flat levels during a volatile session.

Foreign investors pumped in liquidity worth Rs 2,484.09 crore on Tuesday, while volumes on the NSE were in line with recent averages.

Globally, Asian shares retreated as investors waited to see if the US Congress could break a logjam on delivering more aid to people, businesses and local governments affected by the coronavirus pandemic.

In contrast, European stocks edged higher early on Tuesday, as investors were hopeful of a Brexit trade deal but fearful of rising Covid-19 cases and tighter restrictions.

Among sectors, all except media, auto and metal indices closed in the red with PSU banks and FMCG falling the most. The S&P BSE Sensex closed at 46,263.17 points, higher by 9.71 points, or 0.02 per cent, from the previous close. The NSE Nifty50 ended the day's trade at 13,567.85 points, higher by 9.70 points, or 0.07 per cent, from the previous close.

"Except auto and metal, other sectoral indices ended in the red. The Nifty PSU and FMCG indices fell 1 per cent each," said Deepak Jasani, Head of Retail Research at HDFC Securities. (IANS)

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