New Delhi: Markets erased most of its initial gains to end flat as profit-booking emerged during the trading on Thursday. Shares of Reliance Industries contributed to drag the market lower as it closed with loss of more than 4%.
Investors remained cautious after inflation rose slightly, and fears set in of rise in interest rates, despite RBI’s statement of no hike before economic recovery is back on track.
Inflation finally recovered to positive territory for the first time since 30th May 2009, after remaining in the negative zone for 13 consecutive weeks. Inflation for week ended 5 September is at 0.12% as against -0.12% in the previous week.
In the initial trading, markets exhibited gains on positive global cues as Asian market ended in with good gains and European markets were in green.
The Bombay Stock Exchange benchmark Sensex opened upbeat tracking Asia and Wall Street that closed with handsome gains on Wednesday on strong economic data.
Stocks sustained upward momentum till mid session with NSE Nifty touching psychological mark of 5,000, but trading gradually turned volatile on continuous bouts of buying and selling.
Technology, IT, auto, banking and consumer durable sectors contributed to most of the gains. Ones that ran out of favour were oil & gas, realty, PSU and metal stocks.
The 30-share BSE Sensex closed marginally higher by 34.07 points at 16,711.11 and the 50-share NSE Nifty ended slightly up by 7.15 points at 4,965.55.
Leading gainers from BSE was ACC Ltd by 3.65% at Rs827.95, followed by Hindalco by 3.62% at Rs136.05, Jaiprakash Associates by 3.28% at Rs247.40, Bharti Airtel by 3.13% at Rs433.15, Maruti Suzuki by 3.08% at Rs1,559.35, Grasim Industries by 2.89% to Rs2,769.65, Wipro Ltd by 2.02% at Rs566.10, Infosys Technologies by 1.87% to Rs2,360.90 and Tata Consultancy Services by 1.69% to Rs579.90.
Among the few losers on the Sensex were Reliance by 4.45% at Rs2,086.35, Tata Steel by 1.97% to Rs521.15, ITC Ltd by 1.02% at Rs228.60, NTPC Ltd by 0.71% at Rs208.40, Hero Honda Motors by 0.65% at Rs1,663.15 and Reliance Infra by 0.42% at Rs1,189.95.
Reliance Industries Ltd fell 4.45% after the company said that Petroleum Trust sold its 1.5 crore equity shares in the company.
Great Offshore Ltd also improved 0.30% after Bharati Shipyard hiked its stake in the offshore oil services firm to 22.5% by picking up additional 3.01% shares from the market.
TVS Motor Company Ltd dropped by 2.46% despite the Supreme Court yesterday allowed the company to sell its twin spark Flame motor bikes against a legal battle with larger rival Bajaj Auto.
Asian markets ended higher due to better economic data that raised hopes of strengthening of global economic recovery. Japan’s index Nikkei rose by 1.7% buoyed by positive US data and Hong Kong’s Hang Seng set a high close for this year, gaining by 1.6%.