AMN / BIZ DESK
Domestic equity benchmarks ended almost unchanged on Tuesday amid thin year-end trading volumes, as losses in information technology stocks offset gains elsewhere. Investors remained cautious ahead of the upcoming third-quarter earnings season, hoping corporate results will provide fresh direction.
The Nifty 50 inched up 0.02 per cent to close at 26,177.15, while the BSE Sensex slipped 0.05 per cent to 85,524.84. Despite the flat close, both indices have posted solid gains over the last two sessions, with the Nifty rising 1.4 per cent and the Sensex up 1.3 per cent.
Sector-wise performance was mixed, with nine of the 16 major sectoral indices ending in the red. The IT index was the top laggard, falling 0.8 per cent, as investors booked profits after a strong rally of 3.7 per cent over the previous four sessions. The earlier gains were driven by a weak rupee, hovering near record lows, and optimism over a possible U.S. rate cut in 2026, which could improve demand for export-oriented services.
Rate cuts in the U.S. are seen as positive for export-linked sectors such as IT and pharma, as lower borrowing costs tend to boost client spending in the world’s largest economy.
Among broader markets, small-cap stocks outperformed, rising 0.4 per cent, while mid-caps ended largely flat, reflecting selective risk-taking by investors.
On the stock-specific front, Coal India surged 3.7 per cent on reports that its subsidiary Bharat Coking Coal may hit the capital markets with a $145 million IPO in the coming weeks. Shriram Finance gained 2.5 per cent, extending its three-day rally to over 10 per cent following its $4.4 billion deal with MUFG.
Ambuja Cements advanced 1.3 per cent after approving the merger of ACC and Orient Cement, a move expected to result in about 10 per cent value accretion for Ambuja shareholders. Canara HSBC Life climbed 5.2 per cent after brokerage firm Investec initiated coverage with a “Buy” rating.
Meanwhile, investors are also tracking a key U.S. GDP estimate due later in the day, expected to show a strong 3.3 per cent growth in the September quarter. A robust reading could lend support to IT and pharma stocks in the near term.
Overall, market participants remained cautious, balancing recent gains with concerns over global cues and awaiting clearer signals from corporate earnings and macroeconomic data.