Markets end flat amid worries

STOCK REPORT

Key indices ended off highs, after trading over 1 per cent higher through the session, because of profit sales as advance tax figures provided no major surprise, dealers said.

Caution ahead of inflation data, to be detailed on Friday, also added to the selling pressure, they said.

"Advance tax figures are in line with market expectations, there is no surprise element in it," said Kamlesh Kotak, head of research at Asian Markets Securities, while adding that the rise in indices started easing after the tax data started trickling in.

The Bombay Stock Exchange Sensex ended at 12543.85, up 14.23 points, or 0.1 per cent from Wednesday, after touching an intraday high of 12789.81.

The National Stock Exchange's Nifty closed at 3643.60, up 2.50 points or 0.1 per cent. It touched a high of 3711.05.

Combined turnover on both exchanges was Rs 11,600 crore, down nearly 10 per cent from Wednesday, indicating caution through lower participation.

Inflation rate for the week ended March 3 is seen rising to 6.31 per cent, against 6.10 per cent a week earlier.

According to reports, advance tax figures for State Bank of India and Grasim Industries were Rs 690 crore and Rs 200 crore, respectively.

Shares of Grasim Industries and State Bank of India ended down 1 per cent and 2.5 per cent, respectively.

Other major Nifty losers included Housing Development Finance Corp, Suzlon Energy, and Zee Telefilms, down over 2 per cent each.

Suzlon Energy that was trading nearly 2 per cent higher, erased gains and ended down 2.7 per cent as Areva raised its offer price to 140 euros per share of German company REpower.

Areva's revised bid is 11.1 per cent higher than Suzlon Energy's 126 euros a share offer.

The BSE Bank Index, worst affected among sector indices, fell 1.2 per cent ahead of inflation data. Apart from 2.7 per cent fall in State Bank of India, Punjab National Bank, and HDFC Bank also ended nearly 2 per cent lower.

"Lower advance tax number from banking major State Bank of India hints towards slowing growth in banking sector, which caused fall in banking shares on Thursday," an institutional dealer said.

Dr Reddy's was the biggest Nifty gainer, up 3.7 per cent followed by ITC and Infosys Technologies, up 3 per cent each. Mid-cap shares also followed the broad trend.