Sensex, Nifty end flat on last trading day of 2020

After a stellar show for most part of the year, stocks ended the last trading session of the year flat. The Nifty gained 0.20 points (0%) to close at 13,981.75 whereas the Sensex rose by 5.11 points (0.01%) to close the trading session at 47,751.33. The Indian markets remained range bound and volatile on Thursday on account of monthly options expiry.

The benchmark Nifty crossed the 14,000 mark for the first time ever, but ended the session a whisker away after a bout of correction owing to the monthly expiry. The futures and options segment on the NSE saw a turnover worth Rs 57.82 lakh crore whereas, the cash market segment saw a turnover worth Rs 55,074.1 crore. This is against the six month average of Rs 21.7 lakh crore in the futures and options segment as well as Rs 59,316 crore in the cash market segment.

Chandan Taparia, derivative and technical analyst, Motilal Oswal Financial Services, said, “Nifty closed the December 2020 series with the gains of 7.66% at 13981 levels. Bank Nifty future has seen rollover of around 81% on a provisional basis, which is also in line to last month rollover. Positive rollover was seen in IT, Financial, Metals, FMCG, Insurance and Private Banking stocks.”

Markets in European countries such as France, Germany, and the United Kingdom declined 0.05% to 0.91%. On the other hand, Asian markets in countries such as Hong Kong, China, and South Korea were up by 0.3% and 1.8% respectively.

European markets witnessed profit taking after the US decided to impose higher tariffs on European goods. Deepak Jasani, head – retail research, HDFC Securities, said, “European stocks dropped in thin trading on the final trading day of a rollercoaster year even as tighter coronavirus restrictions in Britain and a move by the United States to raise tariffs on some EU products dampened sentiment.”

Foreign portfolio investors on Wednesday bought stocks worth $243.2 million whereas, the domestic institutional investors sold stocks worth $78.32 million. The Indian markets were driven higher by gains in metals, pharma, realty and auto stocks were countered by selling pressure in FMCG and PSU Bank stocks.

The biggest gainers on the Nifty were HDFC, Sun Pharmaceuticals, Divi’s Laboratories, ICICI Bank and Asian Paints up by 1.27%, 1.1%, 1.01%, 0.99%, and 0.96%. The biggest losers on the Nifty were Shree Cement, TCS, Ultratech Cement, Bharti Airtel, and Grasim Industries down by 2.4%, 1.52%, 1.41%, 1.29%, and 1.17%.