Markets recoup initial losses to end flat; Reliance, banks perform poorly

The equity benchmark Sensex staged a smart recovery from the day's low to end with marginal losses on Monday, propped up by robust buying in FMCG and telecom counters. Reliance Industries and banking stocks accounted for most of the losses, while a rebounding rupee also provided support, traders said.
 
After plunging over 750 points in early trade, the 30-share BSE index made a U-turn to finish 63.84 points or 0.13 per cent lower at 48,718.52. In similar movement, the broader NSE Nifty closed 3.05 points or 0.02 per cent higher at 14,634.15.
 
Titan was the top laggard in the Sensex pack, shedding 4.58 per cent, followed by IndusInd Bank, Reliance Industries, Axis Bank, Kotak Bank, ITC, SBI, ONGC and ICICI Bank. On the other hand, Bharti Airtel, HUL, Maruti, Bajaj Finance, Asian Paints, NTPC and Nestle India were among the gainers, climbing up to 3.98 per cent.

 

"Domestic equities recovered sharply from day's low despite weak global cues. While growing uncertainties about collection efficiency and asset quality of banks/NBFCs dragged heavy weight financials, strong buying in FMCG and Metals supported recovery in markets," said Binod Modi, Head Strategy at Reliance Securities.