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    Stock market takes Brexit defeat in stride, ends flat

    Synopsis

    A spurt in oil prices and loss in the rupee capped the upside.

    A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai
    Bank and IT stocks contributed much to the Sensex's rise. FMCG was the top drag.
    NEW DELHI: Stock benchmarks oscillated between profits and losses throughout Wednesday, only to end flat with a positive bias amid optimism in global peers.

    Most markets overseas jumped, giving a shrug to the Brexit deal defeat for British Prime Minister Theresa May, who faces a no-confidence motion.

    The legislative heat is expected to force the UK to delay its departure from the larger European Union.

    A spurt in oil prices and loss in the rupee capped the upside. Investors decided to keep their powder dry ahead of key quarterly earnings tomorrow, chiefly being those of RIL and HUL.

    The BSE Sensex settled little changed, up 3 points, or 0.01 per cent, at 36,321 whereas the NSE Nifty inched up 4 points, or 0.03 per cent, to close at 10,890.

    Bank and IT stocks contributed much to the Sensex's rise. FMCG was the top drag.

    YES Bank jumped the most, by 2.66 per cent, followed by IndusInd Bank, Infosys, ICICI Bank, ONGC and SBI.

    Bharti Airtel, Vedanta, Asian Paints, HCL Tech and Bajaj Finance lost their way, declining over 1 per cent each.

    BSE Midcap and Smallcap indices too fell up to 0.14 per cent.

    Telecom, FMCG and metals indices topped the sectoral losers' list, dropping up to 0.82 per cent. Meanwhile, oil and gas, information technology and healthcare indices posted gains.

    Graphite India and HEG rose 8.33 per cent and 4.16 per cent respectively, were one of the top BSE gainers. Shares of graphite electrode producers such as Graphite India and HEG surged after Japanese graphite electrodes producer Tokai Carbon raised electrode contract prices.

    Jet Airways, on the other hand, came under selling pressure and slumped over 8 per cent amid uncertainty over an open offer. The scrip closed 7.95 per cent lower at Rs 271.


    What made markets play steady today?

    1. Global shares find their footing: World equity markets overcame the crushing parliamentary defeat for British Prime Minister Theresa May's Brexit deal. Stocks were also lifted by signs that China will take more steps to bolster its slowing economy and the US Federal Reserve may pause its run of interest rate rises, according to Reuters.

    The broader Euro STOXX 600 was up 0.3 per cent while indices in Germany, France and Spain all firmed up.

    Earlier in the day, MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.2 per cent, with South Korea's Kospi and Hong Long's Hang Seng both scaling six-week highs.

    2. Rise in oil prices: Oil prices hardened today after climbing about 3 per cent in the previous session over expectations that Opec-led supply cuts will tighten markets despite signs of a global economic slowdown. Brent crude oil futures were at $60.83 per barrel at 0748 GMT, 19 cents, or 0.3 per cent above their last close.

    3. Rupee's rising pain: The domestic currency witnessed another weak session and shed some 23 paise against the dollar to hit intraday low of 71.25. The rupee weakened for the third consecutive session today.

    Expert-take:
    Vinod Nair, Head of Research, Geojit Financial Services

    "Market was range bound as impasse over Brexit deal and continued partial shutdown in the US government drove sentiment. Narrowing trade deficit and selective buying in banks and pharma stocks helped market end on a flat note. Investors remained focused on earnings season to get cues on sectors which may provide positive growth momentum."



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

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