Markets ended a choppy session of trade with moderate gains. The Sensex touched the 17,000 level in morning trades. However, selling pressure in metal and banking stocks dragged the index nearly 300 points from there to a low of 16,708. However, the index recovered some of its gains and ended finally at 16,841 - up 109 points. Nifty ended up 21 points at 5,057.
Global markets were mixed as concerns surfaced once again about the economy and euro-zone and German growth report. In Asia, Nikkei dropped 0.5% to 9,057. Hang Seng added 0.4%, while Shanghai Composite and Taiwan Weighted dropped in trades.
European markets were trading in the negative zone as well. DAX shed 1.3%, FTSE was down 1% while CAC recovered from the lows and was trading in the green.
Among the sectoral indices, realty fell sharply. The index dropped as much as 4% but ended down 2.8% at 1,662. Anant Raj Industries dropped 7%, followed by DLF, Godrej Properties and Unitech.
The Competition Commission of India (CCI) on Tuesday, said the Centre as well as state governments should come out with regulatory framework for the realty sector to protect consumers from unfair trade practices.
BSE auto and bankex slipped 1% each in trades.
Among auto stocks, Maruti Suzuki dropped 3% on reports that the company has cut production of most of its models, including the best selling Alto, by 5% during current month due to slump in demand in the domestic market. Other auto stock, Tata Motors slipped 2.8% after the company reported a 6% decline in global sales to 85,392 units.
Textile stocks dropped a weak performace in the quarter ending June 2011. Companies like Aarvee Denim and Century Textiles have posted a dip in net profits in the quarter under review. A fluctuating cotton and other raw material costs seem to have taken a toll on bottomline of textile companies for the first quarter.
In other news, state-run Coal India (CIL) today toppled billionaire Mukesh Ambani-led Reliance Industries (RIL) as the country's most valued company, with a slightly higher market valuation around mid-day. Coal India ended up 2.6% while Reliance slipped 0.5% in today's trades.
IT index rose 2.2% on bargain hunting after last week's slide following the S&P downgrade of US. TCS jumped 3%. Infosys was up 2.3% and Wipro gained 1% in trades.
Meanwhile, online directory Just Dial is planning to enter the equity markets through the IPO route. It has filed its Draft Red Herring Prospectus (DRHP) with the market regulator Sebi to raise as much as Rs 360 crore through an initial public offer offering (IPO).
BSE market breadth was negative Out of 2,948 stocks traded, 1,954 declined while 894 advanced.
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