Benchmark stock market indices closed flat recovering from losses in early trade as auto sector stocks gained, offsetting losses made by IT stocks over GST rate cut.
The S&P BSE Sensex was down by just 7.25 points to close at 80,710.76, while the NSE Nifty50 gained a paltry 6.70 points to end at 24,741.00.
Vinod Nair, Head of Research, Geojit Investments Limited, said that equities ended flat today, but sentiment stayed mildly positive as key indices rebounded from intraday lows on buying at support levels.
“The auto sector continued to extend gains on expectations of a demand revival. Broader markets outperformed, with strong mid- and small-cap participation as domestic investors rotated into value and growth opportunities beyond large caps,” he added.
Global cues also lent support, with U.S. and Asian markets trading higher ahead of the U.S. jobs report, a key trigger for Fed rate cut expectations. In the near term, markets are likely to remain range-bound, with a buy-on-dips, sell-on-rallies strategy guiding investor behaviour.”