Sensex, Nifty give up early gains to trade flat; Paytm, Hitachi Energy lead activity

Indian equity benchmarks Sensex and Nifty gave up their opening gains and traded flat on Monday morning, as investors chose to stay on the sidelines amid a lack of fresh triggers. The BSE Sensex, which had opened marginally higher, slipped into a narrow range within the first hour of trade. The Nifty 50 too mirrored the trend, hovering near its previous closing level.

Most active stocks

Paytm, Hitachi Energy, BSE, and Titan emerged as the most active stocks on the exchanges, drawing significant trading volumes. Paytm continued to see heightened activity as investors reacted to recent developments around the fintech major. Hitachi Energy was in focus following its quarterly earnings, while BSE and Titan saw brisk trading on the back of sustained interest.

Market participants said the flat opening reflected a wait-and-watch approach, with no major domestic or global cues to drive directional moves. The rupee held steady against the dollar, while Brent crude oil prices remained range-bound, offering little support to sentiment.

Sectoral trends mixed

Sectoral indices on the NSE were mixed, with IT and FMCG stocks showing mild gains, while banking and metal shares traded slightly lower. The broader market, represented by the Nifty Midcap and Smallcap indices, also moved in a narrow band, indicating a lack of conviction among traders.

Analysts noted that the market's inability to sustain early gains pointed to profit booking at higher levels. The Nifty has been consolidating in a range over the past few sessions, and Monday's flat trade suggested that investors were awaiting fresh earnings or policy cues to take a decisive stance.

Global cues subdued

Asian markets were mixed in early trade, with Japan's Nikkei gaining marginally while China's Shanghai Composite dipped. US futures pointed to a flat open on Wall Street, offering no clear direction for Indian equities. European markets were expected to open on a cautious note as well.

Foreign institutional investors remained net sellers in the cash market over the past few sessions, though domestic institutional buying has partly offset the outflows. The market's resilience, despite FII selling, has been a key talking point among traders.

Outlook for the session

With no major economic data due later in the day, the market is likely to remain range-bound. Traders are advised to keep an eye on the movement of the rupee and crude oil prices, which could influence sentiment in the afternoon session. The Nifty's immediate support is seen near its 50-day moving average, while resistance is placed at recent swing highs.

Given the lack of triggers, volatility is expected to remain low, but a breakout on either side could trigger sharp moves. Market participants will be watching for any commentary from the Reserve Bank of India or global central banks for directional cues.

As the session progresses, the focus will shift to the closing levels, with the market likely to take cues from European and US futures. A sustained move above the day's high could attract buyers, while a break below the support zone may invite selling pressure.

The coming days will see the release of key inflation data, which could set the tone for the market in the near term. Investors will also track the progress of the monsoon and its impact on the rural economy, which remains a critical factor for the broader market.