Sensex, Nifty flat as HUL slide offsets IT rally

The Sensex and Nifty closed nearly flat on Tuesday, with the BSE index down 69.86 points, or 0.09 per cent, at 76,765.92.

The Nifty 50 declined 10.60 points, or 0.04 per cent, to settle at 23,985.35.

Bank Nifty saw a bigger drop, falling 331.60 points, or 0.58 per cent, to close at 56,755.60.

IT stocks rallied through the session, with the Nifty IT index up 3.32 per cent, led by TCS and Tech Mahindra.

Hindustan Unilever slid nearly 7 per cent after its quarterly earnings missed market expectations, making it the top loser of the day.

Coal India also fell more than 4 per cent on a weaker-than-expected quarterly profit tied to lower production volumes and higher operating costs, with Bharat Electronics also among the losers.

The Nifty Midcap index rose 0.08 per cent, while the Nifty Smallcap index slipped 0.22 per cent in the broader market.

The flat session followed Monday’s sharp rebound, when the indices snapped a five-day losing streak on falling crude oil prices.

The rally in IT stocks was broad-based, with several other companies in the sector also posting gains during the session, as investors responded positively to the outlook shared by some of the larger firms during recent earnings updates.

Coal India’s decline reflected wider concerns among investors about production volumes at state-run mining companies, a theme that has recurred in past quarters and continues to weigh on sentiment around the stock.

Analysts tracking the session noted that the muted overall movement in the headline indices masked sharper swings at the sector and stock level, with earnings reactions driving much of Tuesday’s price action.

Tuesday’s session unfolded against a backdrop of mixed global cues, with several Asian markets, including Japan’s Nikkei, South Korea’s Kospi and China’s Shanghai Composite, also trading lower during the day.

Market participants said the earnings season remained a key driver of stock-specific moves this week, with several large companies due to report their quarterly results in the coming days.

(Image: Niyantha Shekhar (CC BY 2.0))