Market recovers to close near flat; Nifty holds 26,100 as Midcaps outperform

The equity benchmark indices BSE Sensex and NSE Nifty staged a recovery from intraday lows to end near the flatline on Wednesday (January 7), with broader markets outperforming benchmark indices. The Nifty 50 managed to hold above the 26,100 mark despite pressure from select heavyweight stocks, while midcap shares supported overall market breadth.

The Sensex closed lower by 102 points at 84,961, while the Nifty slipped 38 points to settle at 26,141. The Nifty Bank index underperformed, declining 128 points to 59,991, weighed down by weakness in key banking names. In contrast, the Nifty Midcap index gained 276 points to close at 61,425, keeping advances slightly ahead of declines in the overall market.

Jio Financial Services Ltd, Bajaj Auto Ltd, Coal India Ltd, ICICI Bank Ltd, Bharat Electronics Ltd and Adani Enterprises Ltd were the major gainers. Maruti Suzuki India Ltd, Power Grid Corporation of India Ltd, Max Healthcare Institute Ltd, HDFC Bank Ltd, SBI Life Insurance Company Ltd and State Bank of India were the biggest laggards.

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Information technology stocks provided support to the benchmarks, helping limit losses. However, HDFC Bank and auto stocks acted as drags on the Nifty, preventing a stronger recovery by the close.

Among Nifty constituents, Cipla ended as the top loser after its partner for a key drug received observations from the US Food and Drug Administration. Maruti Suzuki saw profit booking at record high levels, falling up to 5% intraday.

Tata Motors

’ passenger vehicle business remained under pressure following its quarterly update, with the stock declining nearly 2%.

Auto engineering and R&D stocks surged after a positive brokerage note, with Tata Elxsi and KPIT Technologies gaining between 6% and 10%. Jewellery stocks also saw strong buying interest following robust third-quarter updates, with Titan, Senco Gold, and Kalyan Jewellers rising between 4% and 11%.

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Midcap pharmaceutical stocks attracted buying ahead of their results, with Lupinand Torrent Pharmaceuticals emerging as top gainers in the segment. On the other hand, insurance stocks declined ahead of monthly updates, with SBI Life Insurance ending as the top loser in the pack.

Hindustan Zinc closed over 2% lower as silver prices slipped from record levels. Jubilant FoodWorks fell after reporting a below-expected third-quarter update, while Godrej Consumer Products also ended lower.

In individual stocks, Lemon Tree Hotels rose over 4% after sources indicated that Warburg Pincus may buy a material stake. Emmveeextended its rally, gaining over 15% across the last three trading sessions. Indian Energy Exchange added another 3% ahead of the market coupling case hearing scheduled for Friday. Indian Hotels Company slipped 2% after Morgan Stanley downgraded the stock.

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