New Delhi: The Bombay Stock Exchange benchmark index ended flat, merely 0.3% down on Tuesday, regaining most of days low but still reeling below the 9,000 mark.
some buying in the market was induced after the government announced a 4% across-the-board excise duty cut to continue beyond 31 March and also reduced excise duty rates by 2%.
Investors refrained from fresh buying as worries about global financial crisis and deepening recession across major economies continued to nag. Selling of foreign funds and negative opening of European markets also extended pressure on domestic indices.
Through the day most stocks traded in red but consumer durables and FMCG sectors managed to scrape through to green territory. Metal stocks suffered major losses as they fell by 2.54% on demand worries. Banking segment continued to be under pressure as financial scrip suffered worldwide on debt concerns and rumours of nationalization of US banks.
The day began with BSE Sensex down by 1.5%, tumbling further by 200 pts around noon. But 30-share BSE index recovered to end at 8,810.49 or 32.72 points down and 50-share NSE Nifty slipped by 2.55 points to close at 2,733.90.
Some major stocks made gains on the BSE index, Mahindra and Mahindra gained 4.92% to Rs295.10, along with Ranbaxy Laboratories by 3.94% to Rs214.85, Grasim Industries by 3.01% to Rs1,384.65, DLF Ltd by 1.48% to Rs157.35 Hindustan Unilever by 1.46% to Rs252.85, Maruti Suzuki by 1.39% to Rs642.20 and Reliance Communication by 1.22% to Rs150.30.
But Some heavy stocks from the BSE Sensex slipped, Housing Development and Finance Corp by 4.78% to Rs1,289.00, Tata Steel by 4.46% to Rs160.55, Sun Pharmaceuticals by 1.94% to Rs1,002.80 and Sterlite Industries by 1.85% to Rs 243.80.
Analysts expect markets to remain volatile ahead of the expiry of Futures & Options (F&O) contracts for February 2009 series on Thursday, 26 February.
Meanwhile, Asian markets also traded in negative failing to induce buying in the domestic market. Japan’s Nikkei slipped 1.5% to a four-month closing low due to fall in Nomura Holdings and Hong Kong shares tumbled by 2.9% amid fresh fears about the financial system.