Market ends flat after early gains; Nifty below 25,200

The equity markets saw a sharp turnaround on Monday, erasing early gains to end flat, with the Nifty slipping below the 25,200 mark.

All four frontline indices had hit record highs in opening trades as market sentiment was boosted after the country recorded its fastest growth in six quarters, with GDP expanding 8.2%. The benchmark index Nifty mirrored this optimism, opening sharply higher and even marking a fresh all-time high of 26,325.

The Nifty lost 27 points to 26,176.  The Sensex fell 65 points to close at 85,642.

The midcap index held steady at 61,043, whereas the Nifty Bank index declined 71 points to 59,681.

Sectoral movements were mixed. Auto stocks remained resilient, with the sectoral index rising 1%, supported by Tata Motors PV and Maruti, which gained after posting better-than-expected November sales. Eicher Motors closed in the green but off its highs after sales missed estimates. IndiGo, however, was among the top Nifty losers, tracking a weaker rupee and a rise in aviation turbine fuel costs.

Realty emerged as the biggest laggard, falling 1% ahead of the Reserve Bank of India’s upcoming policy announcement. IT stocks moved higher amid a weaker rupee against the dollar, with Cyient and KPIT Technologies leading the gains. Paytm and Kfin also rose on positive brokerage notes, gaining 4% each.

Metal stocks followed global cues and firm commodity prices, with Hind Zinc climbing 3% and NMDC moving 2% higher ahead of its monthly updates. Page Industries faced sustained selling pressure and ended 2% lower. Lenskart gained 5% after reporting healthy Q2 results, while Wockhardt surged 20% after the US FDA accepted its antibiotic Zaynich application.