Nifty Ends Flat, Sensex Closes Below 76,800 on F&O Expiry Day
- Sensex closed nearly 70 points lower, ending below 76,800.
- Nifty held above 24,000, ending little changed amid F&O expiry.
- Lower crude oil prices and a stronger rupee lifted early sentiment.
- IT stocks saw buying interest, helping indices recover from day's lows.
Indian equity benchmarks ended flat on Tuesday, with the Sensex closing below 76,800 and the Nifty little changed, as traders rolled over positions on monthly futures and options expiry day.
The BSE Sensex fell nearly 70 points from the previous close. The NSE Nifty 50 held above the 24,000 mark, but the overall move was narrow. Market participants described the session as range-bound, with volatility staying low.
F&O Expiry Keeps Traders on Edge
The monthly derivatives expiry dominated action. Traders squared off positions, which kept the indices glued to a tight band. The Nifty oscillated within a 150-point range for most of the day.
Analysts said the expiry itself did not trigger a sharp move. The lack of any major domestic trigger meant that the market was content to drift. Volumes were higher than the recent average due to expiry-related rollovers.
Oil Prices and Rupee Provide Early Lift
Markets opened higher after a decline in international crude oil prices. Lower oil is a direct positive for India, a major importer. The rupee also strengthened against the US dollar in early trade, which added to the positive sentiment.
However, the gains faded as the morning session wore on. Profit-taking in heavyweight banking and auto stocks pulled the Sensex into negative territory by the afternoon. The recovery from the day's low was led by a sharp buying spree in information technology shares.
IT Stocks Lead the Recovery
The Nifty IT index gained over a percent, helping the broader Nifty climb back above 24,000 from its intraday low. The Sensex recovered about 250 points from its lowest point of the day. Traders pointed to bargain hunting in IT names after a recent pullback.
The buying in IT was broad-based. Most large-cap IT firms ended in the green. This sectoral support was crucial in preventing a deeper fall on a day when the broader market lacked direction.
What to Watch
With the monthly expiry out of the way, market focus will now shift to global cues and domestic macroeconomic data due later this week. The direction of crude oil and the rupee will remain key near-term triggers. Traders will watch for any fresh institutional flows to set a clearer trend for the Nifty.