Nifty Remains Range Bound as Markets Look for New Triggers

Nifty closed on a flat note with negative bias, while most sectoral indices closed in the green on Thursday.

The NSE Nifty 50 closed at 19,802.00, down by 9.85 points or 0.05 per cent, while the BSE Sensex ended flat, down by 5.43 points or 0.01 per cent at 66,017.81.

Nifty reality was one of the outperforming sectors on Thursday, up by 1.03 per cent, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.

With 49.74 crore equity shares application on the second day of bidding against an offer size of 4.5 crore, investors' enthusiasm for the Tata Technologies IPO persisted. This resulted in an 11-time subscription on Thursday.

All investor types responded strongly, with regular investors subscribing 9.22 times the quota and high-net worth people subscribing 22.96 times. Eligible institutional buyers subscribed 4.15 times, he said.

Flair Writing Industries' Rs 593 crore IPO has received subscriptions 4.48 times, with bids for 6.46 crore shares against the issue size of 1.44 crore shares, Vidwani said.

Investors have responded favourably to the IPO of state-owned financial institution Indian Renewable Energy Development Agency. On the last day of bidding, bids for 717.47 crore equity shares were received, which is 15.24 times more than the offer size of 47.09 crore equity shares, he said.

Hero MotoCorp, Bajaj Auto, BPCL, Eicher Motors and IndusInd Bank were among the top gainers on the Nifty, while the losers were Cipla, UltraTech Cement, LTIMindtree, SBI Life Insurance, and Larsen & Toubro.

Vinod Nair, Head of Research at Geojit Financial Services, said that range-bound momentum continued on the main indexes as the market looked for new triggers for a decisive move beyond the 19,800-level.

However, broad markets’ undercurrent is strong and rapid buying has emerged in the mid- and small-cap counters as bargaining strategy arose on recent underperforming stocks.