Sensex, Nifty end flat but at record closing highs; market breadth negative

The benchmark indices settled at record closing highs for the second straight session, but erased most of intraday gains as investors booked profits in recent outperformers such as Bharti Airtel and Hindustan Unilever, while negative opening in European markets also capped gains. 

The S&P BSE Sensex ended at 30,250, up 3 points, while the broader Nifty50 closed at 9,422, up 15 points. In intraday trade, the 30-share Sensex rose as much as 118 points to hit its all-time high of 30,366, while the 50-share index gained 43 points to touch its record high of 9,451. 

In the broader market, the S&P BSE Midcap and the S&P BSE Smallcap indices pared intraday gains to end flat. 

The breadth, indicating the overall health of the market, turned negative. On the BSE, 1,581 shares declined and 1,246 shares fell. A total of 165 shares were unchanged.

"Nifty settled almost unchanged in a dull session today, taking a pause after yesterday's up move. Jubilation continued in the early trades but profit-taking in the latter half completely trimmed the gains. Meanwhile, there was no shortage of trading opportunities with noticeable buying interest in media, auto and select banks," said Jayant Manglik, President, Retail Distribution, Religare Securities.  

"The recent update on monsoon from the IMD has raised the hopes of better economic growth this year which in turn will push the markets higher. Participants should keep their positions align to the trend and maintain a balanced portfolio. Apart from our preferred sectors, we feel agriculture and consumption based stocks may gain traction in near future," he added.  

Sectors and stocks

Bharti Airtel shed over 2% to Rs 364 after the stock gained 8% in the previous session even as the company reported a 72% drop in net profits at Rs 373 crore for the fourth quarter ended March 31, a second consecutive quarterly decline. 

Hindustan Unilever slipped nearly 2% to Rs 978 after the stock hit its all-time high in the previous session on the hopes of an above average monsoon this year. 

Nifty media index (up 3%) was the leading sectoral gainer. Sun TV (up 6%), Zee Learn (up 5%), Dish TV (up 4%) and Inox Leisure (up 2%) gained the most on the index.

Two-wheeler maker Hero MotoCorp was up 3% to Rs 3,422 while rival Bajaj Auto rose 2% to Rs 2,961 on hopes good monsoon rains will boost sales, especially in the rural markets. TVS Motor Co gained over 1%. 

Banks also gained as investors pinned their hopes on easing bad loans in coming quarters after the government tweaked its laws last week to help tackle the record $150 billion in troubled bank debts. The Nifty PSU Bank index was up 1.4%, led by gains in Allahabad Bank, Union Bank, Bank of India and Bank of Baroda, which added anywhere between 2-3%.

Global markets 

Overseas, European markets were under pressure as investors reacted to the latest batch of corporate earnings and strong gains in oil prices, but most Asian stocks advanced as global equities remained at record levels and a rebound in oil boosted energy producers.

The pan-European Stoxx 600 dipped 0.16%, while Germany's DAX and France's CAC 40 was hovering on a flatline. Among Asian markets, China's Shanghai Composite and Japan's Nikkei settled 0.3% higher, while Hong Kong's Hang Seng index added 0.4%.