Sensex and Nifty Close Flat; Nelco Soars 14%, Ultratech Climbs 3%; IT Sector Lags

Indian equity markets ended on a flat note on Tuesday, with the BSE Sensex adding a mere 5.41 points or 0.01% to close at 62,792.88, while the Nifty50 edged higher by 5.15 points or 0.03% to end the session at 18,599. Despite mixed cues, rate-sensitive stocks such as banking, auto, and realty saw buying interest ahead of the Reserve Bank of India's (RBI) monetary policy meeting scheduled for later this week. Meanwhile, IT stocks were under pressure amidst a broad selloff in the sector.

The broader market outperformed the primary indices, with BSE midcap and smallcap indices rising about half a percent each. Among the top gainers, Nelco (NS: NELC ) saw its shares surge 14%, while Ultratech Cement (NS: ULTC ) added 3% in today's trade.

Investors remain cautious ahead of the much-anticipated RBI monetary policy meeting, where key rates and economic outlook are expected to be discussed. Market participants are keenly watching for any signs of policy changes that could impact interest rate-sensitive sectors such as banking, auto, and real estate.

Banking stocks remained in focus, with Axis Bank (NS: AXBK ) adding 2%, HDFC Bank (NS: HDBK ) gaining 0.8%, and ICICI Bank (NS: ICBK ) rising 0.7%. Auto stocks also saw buying interest, with Maruti Suzuki (NS: MRTI ) climbing 1.5%, and Tata Motors (NS: TAMO ) gaining 0.8%. Realty stocks such as Godrej Properties (NS: GODR ) and DLF (NS: DLF ) rose by 1.9% and 1.6% respectively.

However, IT stocks faced significant headwinds, dragging down the overall market sentiment. Infosys (NS: INFY ) shed 1%, while Wipro (NS: WIPR ) and HCL Technologies (NS: HCLT ) dropped 0.9% and 0.8% respectively. TCS (NS: TCS ), another major player in the IT sector, also witnessed a decline of 0.6%.

On the global front, Asian markets traded mixed as investors weighed the potential impact of the ongoing energy crisis and inflation concerns on economic recovery. European markets opened higher, supported by positive earnings reports and hopes of a resolution to the ongoing supply chain issues.

In the currency market, the Indian rupee depreciated marginally against the US dollar , trading at 75.01 at the time of writing.

Looking ahead, market participants will closely monitor developments surrounding the RBI monetary policy meeting and global cues for further direction. Additionally, corporate earnings announcements and economic data releases are also expected to influence market sentiment in the coming sessions.

In summary, Indian equity markets closed flat on Tuesday with mixed cues from various sectors. Rate-sensitive stocks outperformed ahead of the RBI's monetary policy meeting, while IT stocks lagged behind due to selling pressure in the sector. The broader market showed resilience with BSE midcap and smallcap indices registering gains. Investors will be keeping a close eye on the upcoming RBI meeting, corporate earnings, and global developments for further cues that could impact market movements.