Closing Bell: Market Ends Near Flatline; Sensex, Nifty Surrender Intraday Highs, Midcaps Soar

The Sensex and Nifty 50 gave up early gains to close lower, marking a sharp fall in the last hour of trading. The indices slipped from their intraday record highs of 72,562 and 21,834, ending the day on a mixed note.

The Sensex fell 169 points to settle at 72,071, while the Nifty managed to gain 11 points, closing at 21,742. The market, which initially soared on positive sentiments, experienced a swift downturn in the final stretch of trading.

While the broader market exhibited resilience, the Midcap Index notably rose by 291 points to reach 46,472. In contrast, the Nifty Bank faced headwinds, slipping 58 points to close at 48,234.

One standout performer on the day was Nestle, surging ahead of its record date of January 5 for a stock split, recording a remarkable 3% gain. Adani Group stocks also showed strength, with gains of up to 5%, contributing to the market's mixed performance.

However, the automotive sector faced a setback after reporting lower-than-expected December sales. Mahindra & Mahindra emerged as the top loser in this segment. Additionally, Eicher Motors witnessed a decline following the announcement of a Rs 131 crore GST demand notice.

Bharti Airtel, on the other hand, experienced profit booking and found itself among the top Nifty losers. Meanwhile, Vodafone Idea extended gains from Friday's session, rising by more than 25% in just two trading sessions.

Gujarat Public Sector Undertakings (PSUs) saw strong buying interest on Monday, with GNFC, GSPL, GSFC, and GMDC all witnessing gains in the range of 5-6%, contributing to the market's mixed performance.

The overall market breadth favoured advances, with the advance-decline ratio standing at 2:1. Despite the late-day volatility, the market demonstrated pockets of strength, indicating a mixed sentiment among investors.

Analysts suggest that the sharp fall in the last hour of trading may be attributed to profit booking, particularly in stocks that had witnessed significant gains earlier in the day. The rollercoaster ride on the indices highlights the inherent volatility in the current market environment, influenced by a combination of global cues and domestic factors.