Though the opening was strong, investors subsequently took profit off the table, worried about fast-changing developments involving North Korea. In the end, the gains turned out to be only marginal.
“Blue-chips have been consolidating in the last one month in line with the havoc in the global market and outflows in FII money . But undercurrent is strong as shown by the positive return and outperformance of mid and small cap,” said Vinod Nair, Head of Research, Geojit Financial Services.
The broader NSE Nifty ended up 13.70 points, or 0.14 per cent, at 9,929.90, after moving between 9,964.85 and 9,917.20. The benchmark Sensex scaled the day’s high of 31,814.96, taking positive leads from Asian markets. But it succumbed to selling pressure mid-afternoon before settling at 31,662.74, up 0.77 point. The gauge had lost 148 points in the previous session.
“The underline is that market is hoping for a strong pick-up in earnings growth by H2 FY18, which is the fillip to go beyond current level,” Nair added.
Buying by domestic institutional investors (DIIs) kept a big fall at bay despite capital outflows by foreign funds.