Markets in consolidation mode

It was a day of consolidation. The markets ended flat after trading in a narrow, albeit choppy range, as they attempted to digest the gains of the past two days. The Sensex closed below the dotted line at 17,169, down 28 points, and the Nifty ended at 5,123, up a point.

The indices surged to a one-month high in morning trades, with the Sensex touching 17,329. Overnight, the Dow Jones had advanced to its highest close in 14 months, as a weak dollar boosted the shares of natural resource companies and economic data reinforced hopes of a sustainable recovery. The receding fears surrounding the Dubai crisis further boosted sentiment.

But, the markets soon began their slide, touching the day’s lows in the afternoon, and moved sideways till the close of trade. By the closing bell, the Sensex had shed around 180 points from the morning highs.

Realty, auto and banking were the leading sectoral gainers on the BSE.