Markets have a sedate closing

The benchmark indices ended around the previous week's levels, but not before undergoing some jitters in the course of the day. In what wouls qualify as a reasonably volatile session of trade, the Sensex swung in a range of nearly 200 points before ending virtually unchanged at 18,266, higher by two points and ditto with the Nifty, which ended at 5,484, down two points. The broader market indices also ended flat, but with a positive bias. The midcap index ended at 6,917, higher by 19 points and the smallcap index shut shop at 8,313, up 24 points. Metal and oil stocks had a rough ride. 

The markets had opened lower following weak global cues after US reported disappointing economic data on Friday. Hang Seng and Nikkei had lost nearly 1% each in the backdrop of a 1% slide in Dow Jones, which broke the crucial 12,000 level at 11,952 to record it lowest close since March 18. But a recovery in Hang Seng and buying interest at lower levels seemingly facilitated the u-turn back home. At one point, the BSE benchmark cruised along to surpass the 18,300 mark.  But the smart rebound proved to be short-lived in the final analysis.

All other Asian markets ended at 12-week-lows, shedding in the region of about a percent each, as Chinese data highlighted concerns about weaker global growth momentum. But there is a silver lining in the fact that the European markets, including FTSE, CAC and DAX, rebounded into the green after being in the doldrums in the early part ogf the trading sessiion. And pre-market trading suggests a flat-to-positive opening on Wall Street later in the day.

Hindalco weakened by 2% at Rs 180 to top the loser's list on the BSE. RIL shed 1.8% at Rs 926 as the markets apparently gave a thumbs-down to its decision to buy Bharti Enterprises’ stake in two joint ventures with France’s AXA. Reports that oil regulator DGH refused to accredit three natural gas discoveries made by the company at its KG-D 6 block seem to have also dampened sentiments towards the heavyweight counter. And Tata Steel lost 1.1% at Rs 562.

On the other hand, Jaiprakash Associates gained 3.1% at Rs 84, NTPC strengthened by 2.2% at Rs 180 and Cipla added 2% at Rs 338 on the BSE.

Among the stocks in the news, Reliance Industrial Infrastructure Limited, which, along with Reliance Industries, is buying Bharti's shareholding of 74% in Bharti AXA Life Insurance Company and Bharti AXA General Insurance Company Limited, ended on the higher side, soaring by 2.1% at Rs 581.

IT major Infosys Technologies recouped the day's losses and ended higher by 0.5% at Rs 2,877. The company had earlier announced the expansion of its board through the induction of four new members.

OMCs and airline stocks gained on a decline in crude oil prices. The US crude futures dropped 40 cents to $98.89 per barrel. Indian Oil surged nearly 2.7% at Rs 322, BPCL gained nearly 2.2% at Rs 618 and Hindustan Petroleum moved up 1.5% at Rs 371. In the airline space, Kingfisher Airlines and Jet Airways advanced in the region of about half a percent each to Rs 41.50 and Rs 450 respectively.

And banking stocks ended on a mixed note as the countdown begins for the next credit policy scheduled on Thursday. The central bank is expected to raise rates by 25 basis points to rein in inflation. SBI lost 1% at Rs 2,220, while HDFC  Bank gained 0.5% at Rs 2,373 and ICICI Bank added 0.4% at Rs 1,039.

The market breadth was negative. Out of 2,939 stocks traded on the BSE, there were 1,438 advancing stocks as against 1,378 declines.