The Sensex and Nifty 50 turned flat around noon on May 6 with Nifty PSU Bank stocks falling over 3 percent after the Reserve Bank of India (RBI) released draft guidelines proposing tighter norms for lending and heightened monitoring for under-construction infrastructure projects.

The top laggards on the Nifty PSU Bank index were Punjab National Bank, Canara Bank, Bank of Baroda, and Union Bank, all slumping over four percent.

NBFCs such as REC, Power Finance, and IREDA also crashed up to 12 percent as they are focused on financing power projects, which are a significant part of the infrastructure pie.

In the broader market, the BSE Midcap and BSE Smallcap index fell 0.7 percent each.

Around noon, the Sensex was up 147 points or 0.2 percent at 74,025.47, and the Nifty 50 was up 4.2 points at 22,480. About 1,119 shares advanced, 2,154 shares declined, and 117 shares remained unchanged.

Sectoral Trend

Apart from Nifty PSU Bank, which was down by over 3 percent at 11.51 am, Nifty Media and Nifty Energy were down 1.4 percent and 1.8 percent, respectively. Meanwhile, Nifty Realty rose over 2 percent, emerging as the top gainer amongst sectoral indices.

Fundamental View

"Market sentiment remains optimistic, supported by hopes of political continuity amidst ongoing general elections. However, concerns loom over inconsistent Q4 corporate earnings," said Prashanth Tapse, Senior VP (Research) at Mehta Equities. He said that the focus will be on key earnings reports.

"Kotak Mahindra Bank's robust performance stands out, while preferred trades include Nifty and Bank Nifty with specified targets and stop-loss levels. Stocks like Coal India, NTPC, and Tata Motors are viewed favorably on corrective declines, while IRCTC emerges as a top pick for its momentum potential," Tapse said.

Technical View

"Technical analysis of the Nifty daily chart provides insights into critical support and resistance levels," Mandar Bhojane, Research Analyst at Choice Broking said in a note. "Breaching the 22,700 mark may signal an upward movement towards 22,900 and 23,000, with immediate support at 22,300," he said.

He advised traders and investors to capitalize on buying opportunities during Nifty 50's dips while implementing effective stop-loss strategies below the mentioned support levels. "This cautious approach aims to mitigate risks and capitalize on potential gains in today's trading session."

Key Nifty gainers

Britannia, Kotak Mahindra, TCS, JSW Steel

Key Nifty losers

Titan, Adani Enterprises, Adani Ports, NTPC

Key Sensex gainers

Kotak Mahindra, TCS, JSW Steel, Sun Pharmaceutical

Key Sensex losers

Titan, NTPC, SBI, Power Grid

Stock moves

Tata Technologies: Shares slumped 5 percent as the company's weak results for the January-March quarter disappointed investors.

Britannia Industries: Shares surged over four percent in early trade despite the FMCG major's net profit falling more than expected.