The market has seen some consolidation with a negative bias on Tuesday after a 447-point rally seen in earlier three sessions. It may be waiting for near term trigger i.e. five state assembly elections results due on December 8 followed by November inflation, RBI policy, FOMC meet and winter parliament session.
Equity benchmarks snapped three-day winning streak with the Sensex falling 43.09 points to close at 20,854.92 and the Nifty declining 16 points to hold the 6,200 level at 6,201.85.
“The election outcome will be one of the biggest trigger,” Deven Choksey, MD, KR Choksey Securities said. If the outcome is positive then the inflow of money will be more positive, he adds.
According to him, Nifty’s downside is now protected and it is likely to hold 6,000-6,050 whereas it is unlikely to break 6,350-6,400 on the upside. “Huge liquidity gush and sustained buying can only help Nifty to break above this range.”
Meanwhile, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices gaining more than 0.2 percent.
There was profit booking in financials, FMCG, healthcare and auto stocks while IT and metals bucked the trend.
Larsen & Toubro, Dr Reddy’s Labs, Sesa Sterlite, NTPC and Coal India fell more than 1 percent. ITC, HDFC Bank, HDFC and Hindustan Unilever declined over 0.5 percent.
However, GAIL, Jindal Steel and BHEL gained nearly 3 percent. Index heavyweight Reliance Industries rose 0.8 percent while TCS and Infosys added 0.3 percent.
In the broader space, Shree Renuka Sugars rallied 5 percent on source-based reports that the company is in advanced talks with Singapore-based Wilmar Group for stake sale.