Markets end flat amid choppy trade
Markets ended flat on Wednesday as the higher levels of retail inflation weighed on the bourses. Also, investors were decidedly cautious as the valuation of several stocks appeared stretched in view of the recent rally.
Sensex adds just 7 points as higher inflation nos weigh on bourses
Mumbai: Markets ended flat on Wednesday as the higher levels of retail inflation weighed on the bourses. Also, investors were decidedly cautious as the valuation of several stocks appeared stretched in view of the recent rally. They were seen trimming their exposure at existing higher levels, pulling the key indices down from their day's highs.
Buying activity gathered steam at the outset on positive economic data as industrial production expanded at 1.2 per cent in May after a revised reading of -1.3 per cent in April, mainly due to uptick in consumer durable output. But the worry is retail inflation in June inched up to a 22-month high of 5.77 per cent that restricted the gains, dealers said.
In a volatile trade, the BSE Sensex after opening higher moved up on the back of gains in blue-chips, but in the end, settled at 27,815.18, a measly gain of 7.04 points, or 0.03 per cent. The gauge had gained 681.24 points in the previous two sessions on sustained capital inflows. In contrast, the NSE Nifty-50 closed in the red with a fall of 1.55 points, or 0.02 per cent, at 8,519.50.
In the 30-share Sensex universe, 13 added to their gains. Tata Steel stole the show with a gain of 4.47 per cent, followed by GAIL 3.09 per cent, ONGC 3.01 per cent, Coal India 2 per cent, Infosys 1.46 per cent and TCS 1.21 per cent. Power Grid, Lupin, L&T, Maruti Suzuki, Asian Paints, Tata Motors, Axis Bank, Sun Pharma, M&M and HDFC Bank all went down by up to 2.85 per cent.
The broader markets displayed a weak trend, with the small-cap index falling 0.82 per cent and the mid-cap 0.55 per cent. The market breadth remained negative as 1,727 stocks ended in the red, 1,018 stocks closed in the green while 164 stocks ruled steady. Overseas, Japan's Nikkei ended 0.84 per cent higher and Hong Kong's Hang Seng gained 0.46 per cent while China's Shanghai Composite rose 0.37 per cent. Europe was trading in the positive zone, tracking gains across most of Asia.
