Retail Players On Sidelines, Run Flat, Volumes Bare
Markets ended flat today as gains in select blue chips such as Hindustan Lever and Larsen & Toubro were offset by the slide in other pivotals such as ITC Ltd and Infosys Technologies.
After trading in a narrow range of around 20 points, the sensex wound up with a modest gain of 4.42 points to close at 3,123.60, while on the National Stock Exchange, the S&P CNX Nifty gained 3.65 points to end at 998.85. Losers outnumbered gainers amid thin trades.
Brokers said even though there was no rush to sell, the undercurrent appeared to be cautiously optimistic even as investors booked some recent gains amid uncertain global markets, an erratic monsoon, and fresh signs of tension between India and Pakistan.
Nimish Shah, managing director, Fortune Financials, said, "There seems to be lack of confidence in the market as most of the retail investors are still preferring to stay away from the market. Moreover, traded volumes have dipped drastically in the last few days."
Fast-moving consumer goods major Hindustan Lever advanced 0.81 percent to end at Rs 181.25, while two-wheel major Hero Honda Motors rose 1.77 percent to close at Rs 278.40.
Other blue-chip heavyweights such as Reliance Petroleum was up 0.68 per cent at Rs 22.10, Sate Bank of India rallied 0.91 per cent to Rs 233.70, and Reliance Industries advanced 0.44 per cent to Rs 250.65 on select institutional support.
Other old-economy bluechips such as Larsen & Toubro (up 2.78 per cent to Rs 184.85) and Tata Engineering (up 2.21 per cent to Rs 136.60) also settled firm.
However, cigarette major ITC shed 1.40 per cent to Rs 674.90 on profit-taking after recent gains. Also, Nestle India slipped down 4.29 per cent to Rs 541.50, dropped after gaining over 8 per cent on Friday.
Meanwhile, technology bellwether Infosys Technologies was among the few stocks in the sector that ended lower, after rising more than 5 per cent on Friday.
The stock settled down 1.61 per cent to Rs 3,477.35. The company is scheduled to hold its annual analysts meet on Tuesday and market expects it to announce a major order.
Other front-line tech stocks, which failed to rally on Friday, ended higher on renewed buying. Satyam Computer recovered from a low of Rs 218.85 to Rs 226.35 but settled at Rs 225.30, up 1.67 per cent over its Friday's close. HCL Technologies also bounced back from a low of Rs 195.50 to Rs 203.50 before settling at Rs 201.45, up 1.74 per cent over its previous close. Media major Zee Telefilms settled up 0.85 per cent to Rs 107.10 on selective buying interest.
Other tech stocks like Wipro (up 3 per cent to Rs 1,251.10), NIIT (up 1.65 per cent to Rs 148.05), Hughes Soft (up 1.16 per cent to Rs 156.90), i-flex solutions (up 0.53 per cent to Rs 535) and SSI (up 0.29 per cent to Rs 122.65) ascended on selective buying interest. But Polaris Soft (down 2.31 per cent to Rs 199.15) and Digital GlobalSoft (down 0.70 per cent to Rs 599) declined on selling pressure.