Market breadth worst since October last year

MUMBAI: The market breadth turned negative on Tuesday as the advance-decline ratio fell to 0.16:1, the worst since October 23, 2023, said Deepak Jasani, Head of Retail Research at HDFC Securities.

Nifty ended flat after a volatile session on Tuesday. At close, Nifty was up 0.01 per cent, or 3.1 points, at 22,335.7, while the Sensex was up 165.32 points, or 0.22 per cent, at 73,667.96.

Cash market volumes on the NSE were flat at just below Rs 1 lakh crore, Jasani said.

The broad market indices ended deep in the negative even as the advance-decline ratio fell to 0.16:1, the worst since October 23, 2023.

Asian equities mostly rose on Tuesday led by Chinese tech firms, while expectations that the Bank of Japan may be ready to exit an ultra-easy policy as soon as next week weighed on the Nikkei.

European stocks gained with support from strong corporate earnings and ahead of a report on inflation in the US, which could sway the Federal Reserve’s timing on cutting interest rates, Jasani said.

The domestic market witnessed rangebound trading on Tuesday after Monday's sharp profit booking.

However, mid and smallcap stocks remained pressured, primarily due to apprehensions regarding inflated valuations, said Vinod Nair, Head of Research, Geojit Financial Services.

Global sentiment remained mixed as the investors awaited key US inflation data, which could offer insights into the Fed's interest rate decisions, Nair said.

Additionally, the market participants are anticipating India's inflation figures scheduled for release on Tuesday to remain consistent with the previous month, which will be at the middle of RBI's tolerance range, he added.