Nifty gains 8 points in mute pre-holiday trade, IT stocks up

The overall trading sentiment was dampened by the ongoing concerns about the US fiscal cliff and last week's sell-off in global financial markets.

On Friday, the 50-share benchmark index had plunged by a hefty 69 points on the back of heavy profit-taking.

Trading got off to a strong start today following firm buying in heavyweights and beaten down counters amid short- covering. Selling in oil & gas and banking counters capped gains, leading to narrow movements.

The key index turned volatile in late afternoon and surrendered entire gains before rebounding on some bargain buyout as retail participants positioned themselves ahead of tomorrow's Christmas holiday and expiry of derivative contracts on Thursday.

Globally, Asian markets ended mixed in a listless trade amid nervousness about the risk if the US fails to avert a fiscal crisis.

Technology, pharma, FMCG and auto stocks saw good buying interest, while oil & gas, select bank and auto counters witnessed selling.

The Nifty hovered between a high of 5,871.90 and a low of 5,844.70 before concluding at 5,855.75, a modest rise of 8.05 points, or 0.14 per cent, over the last close.

Tata Motors, Sun Pharma, DLF, Lupin, Wipro, Axis Bank, ACC, Infosys, BPCL and GAIL were the top Nifty gainers. Key losers were Jindal Steel, UltraTech, ONGC, Maruti, Grasim, Sesa Goa, HeroMoto, JP Associates, Kotak Bank and Tata steel.

The turnover in cash segment dropped sharply to Rs 7,834.16 crore from Rs 12,063.17 crore last Friday. Overall, 5,223.98 lakh shares changed hands in 41,06,692 trades. Total market capitalisation stood at Rs 66,39,876 crore.