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India stocks close flat after choppy trade

India stocks close flat after choppy trade
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First Published: Wed, Jun 22 2011. 04 42 PM IST
Updated: Wed, Jun 22 2011. 04 42 PM IST
Mumbai: Even as the global stock markets rebounded after the Greek government won a confidence vote, Indian markets closed flat. After opening on a positive note, local stocks soon turned choppy as a below normal monsoon forecast revived concerns about high inflation and rural spending.
The weather department on Tuesday said monsoon rains in India will remain below normal for the second time in three years. Below normal rainfall can scuttle India’s battle against food inflation. These concerns led to selling in stocks of companies that depend on consumer discretionary spending.
Sensex: 17,550 –0.06%
Nifty: 5,278 +0.05%
Hindustan Unilever, Ranbaxy Laboratories, Bharti Airtel, TCS and Maruti Suzuki led the losses among Nifty 50 shares.
Hindustan Unilever: Rs 310 –3.61%
Ranbaxy Laboratories: Rs 515 –3.11%
Bharti Airtel: Rs 382 –2.45%
TCS: Rs 1,081 –2.25%
Maruti Suzuki: Rs 1,123 –1.90%
Mahindra & Mahindra, Tata Power and Cipla, on the other hand, registered notable gains of over 2%.
Mahindra & Mahindra: Rs 649 +2.29%
Tata Power: Rs 1,235 +2.13%
Cipla: Rs 322 +2.03%
At the sectoral level, consumer durables, real estate and FMCG stocks led the losses on the BSE.
BSE Consumer Durables: 6,389 –3.83%
BSE Realty: 1,935 –2.29%
BSE FMCG: 3,735 –0.67%
BSE Oil & Gas: 8,770 +0.28%
Consumer durable stocks plunged on concerns that high inflation might impact sales of these firms. A survey conducted by Boston Consulting Group found that 42% of the Indian consumers are planning plan to cut spending due to high inflation. (Read more)Meanwhile, CLSA downgraded Titan Industries to sell citing moderation in growth and earnings.
Titan Industries: Rs 4,288 –6.23%
Blue Star: Rs 301 –2.85%
Gitanjali Gems: Rs 278 –2.35%
Bajaj Electricals: Rs 248 –1.41%
Overall, 60.71% of the stocks traded on the BSE closed the day with losses.
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First Published: Wed, Jun 22 2011. 04 42 PM IST
More Topics: Markets Update | BSE | NSE. Sensex | Nifty | Inflation |