Mumbai: It all started with an opening in red due to profit booking and higher oil prices. Then stocks gained in mid-day trade on news of peace talks in Libya.
Also, weekly food inflation numbers which came in at 10.39% for the week ended 19 February, lower than the 11.49% recorded last week added to the gains. But the rally was short lived as soon Reuters reported of an air strike in the Brega oil terminal in Libya, which sent the Sensex down once again.
In the end, the markets ended marginally up.
SENSEX 18489.76, up 0.2%
NIFTY 5536.2, up 0.25%
This volatility is expected to continue as all eyes are tuned in towards Libya. However, there seems to be some good news at least on the supply side for food grains.
Supply side concerns are easing as the kharif harvest is picking up post the untimely rains in November. We expect food inflation to fall further, said Gautam Singh, economist at Anand Rathi Financial Services.
Among the sectoral indices, capital goods gained 2.3%, the most, followed by auto at 1.9%. Oil and Gas, tech, IT and metal stocks lost between 0.5-0.8%.
Amid the midcaps, Bajaj Finserv saw gains of over 20% to end at 527.45 on news of the tie up between Bajaj Allianz and Berkshire Hathaway for general insurance.
Jaiprakash Associates was the top gainer on the Sensex and recorded gains of 3.3%.