Nifty and Sensex, after slipping half a percent each in the morning, managed to recover all losses to trade in the green at noon on June 24. FMCG and auto stocks were the major gainers on the bourses.

At about 11:50 am, the Sensex was up 0.2 percent at 77,329 and the Nifty was up 0.12 percent at 23,529. About 1,916 shares advanced, 1,450 shares declined, and 134 shares unchanged.

The broader indices outperformed the headline indices, with the Midcap and Smallcap indices trading 0.2 and 0.6 percent higher, respectively. The fear gauge or India VIX was up nearly 6 percent to almost 14.

"The sectoral churn happening in the market might accelerate since profit booking is happening in some overvalued sectors and money is flowing into fairly valued large caps," V K Vijayakumar, chief investment strategist at Geojit Financial Services said.

Sectoral Trend

Eight indices edged higher, with the FMCG and auto sectors being the top performers. In the FMCG sector, ITC, Nestle India, and Hindustan Unilever led the gains, while M&M and Bajaj Auto were the biggest gainers in the auto sector. Conversely, the realty and metal indices were the worst hit. In the realty sector, DLF was the biggest laggard, while Tata Steel saw the largest decline among metals.

Fundamental View

Vijayakumar also added that the consolidation phase in the market is likely to continue. The near-term strength in the market could come from Bank Nifty assisted by institutional buying notably from FIIs who turned buyers last week. However, the SEBI investigation into the Quant Mutual Fund is negative for the market.

"There is a likelihood of the rupee turning stable with a positive upward bias in the near term on expectations of big debt inflows after the inclusion of India in the Global Bond EM Index later this month. This can act as a trigger for more FII inflows into equity, going forward," he added.

Technical View

"We expect weak sentiment as long as the market is trading below 23,700 and 77,800 (Nifty and Sensex) and anticipate a retest of 23,400 and 76,700 levels.  On the other hand, a breakout above 23,700 and 77,800 could lead the market towards 23,800-24,000 and 78,000-78,500."

Key Nifty gainers

Sun Pharma, M&M, Power Grid, Nestle, Bajaj Auto

Key Nifty losers

IndusInd Bank, Adani Ports, Cipla, Coal India, Tata Steel

Key Sensex gainers

Sun Pharma, M&M, Power Grid, Nestle, TCS

Key Sensex losers

IndusInd Bank, Bajaj Finance, Axis Bank, Tata Steel, HCL Tech

Stock Moves

TBO Tek: Shares jumped 7 percent to hit a fresh 52-week high after Goldman Sachs initiated coverage with a buy call. The brokerage issued a buy call, with a target price of Rs 1,970 per share, foreseeing a 24 percent upside from current levels.

Inox Green Energy: Shares sank over five percent after the clean energy player's board of directors announced they would consider raising funds. Reports suggest the firm might raise to Rs 1,000 crore via preferential allotment and warrant issuance to be able to fund any future acquisitions.