Sensex ends flat, Nifty holds 8,100; Winter session begins

The market pared all its gains to settle the day flat on Wednesday amid discussion on PM Narendra Modi’s demonetization move as the winter session of Parliament kicked off.

The S&P BSE Sensex ended down 6 points at 26,298 and the Nifty50 settled 3 points higher at 8,111. In the broader market, BSE Midcap and Smallcap closed 0.56-0.05% higher each. 

The benchmark indices rallied in intraday deals amid gains in IT stocks thanks to weaker rupee, while cooling retail inflation bolstering the chances of a rate cut next month, also lifted the sentiment. 

Market breadth turned negative with 1,547 losers and 1,055 gainers on the BSE Stock Market Astrology Tips

"The Market rebounded as investors used the advantage of a drop in valuation while the selling at higher levels pulled back the market to close flat. The winter session of parliament and the US fiscal policies will dictate the market direction in the long-term. Besides, the moderation in CPI inflation may provide RBI with a window of opportunity to carry out a rate cut," said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services.

Winter Session of Parliament begins

The discussion in Parliament on PM Narendra Modi’s demonetisation drive remained in focus as investors continued to estimate the impact of the move on the economy. 

"The market continues to grapple with the impact of demonetisation. In weeks ahead, we will get a clearer picture on how different sectors react to the withdrawal of high currency notes. The common consensus is that the whole economy will be hit by this monetary shock," said Jay Shankar, chief India economist & director, Religare Capital Market Future & Option Trading Tips

"The stabilisation we see today is a reaction to the broader global sentiment, but the recovery is likely to be temporary and we can expect some volatility shortly," he added.

Retail inflation cools off

Consumer prices rose by an annual 4.20% in October in their slowest pace in 14 months, data released after market hours on Tuesday showed, increasing the odds of another rate cut after a 25 basis point reduction last month.

But some analysts reckon an impending interest rate increase in the United States could force a status quo until February.