Resurgent markets end with a whimper

Late selling following reports of a lower-than-normal rainfall in the last two weeks wiped out entire gains of the benchmark indices. The Sensex opened 30 points lower amid weak global cues, and soon touched a low of 18,449. However, the markets thereafter remained resurgent for most part of the day and brushed off slightly dissapointinf inflation numbers. The Sensex recovered 354 points to a high of 18,803 on the back of buying in rate sensitives. However, weak monsoon data took its oll on investor sentiments and the index erased all the gains, ending finally at 18,618 - up 22 points. The NSE Nifty ended up 14 points at 5,600.

India's Met department said, that monsoon rains were 19%  below normal in the week ended July 13. 

Meanwhile, Asian markets ended on a mixed note today. Nikkei slipped 0.3% on fears that Moody's can cut the United States' triple-A credit rating. The $ touched multi-month lows. Hang Seng ended flat while Shanghai Composite edged up 0.5%. Italy's debt worries have taken major markets in the Europe down 0.5% each.

Meanwhile, the government came out with June inflation figures. Inflation for the month stood at 9.44% compared to 9.06% in April and WPI primary articles index was at 2.8% on a month-on-month basis. The interest rates sensitive sectors seemed to have discounted the spike in inflation numbers.

In other news, the terror attacks in Mumbai were not attacks on India's financial markets, Home Minister Chidambaram said today. In Wednesday's serial blasts across the city, at least 21 people have been confirmed dead and 141 injured.

BSE IT index slumped 1.5% to 5,835 ahead of the second major results today. TCS shed 2.2% at Rs 1,125. Infosys has not recovered post results and was down 1.5% at Rs 2,741.

"The overall trend for Infosys has been weak. However, we expect support at Rs 2680/2700 levels. On the higher side, it will face a lot of resistance between Rs 2880/2900 levels," said Rajesh Jain, EVP & Head - Retail Research, Religare Securities.

Meanwhile, BSE realty index ended with 2.2% gains after touching an intra-day high of 2,222. Bankex, healthcare and metal indices moved up around 1% each.

ICICI Bank contributed around 20 points to index's upmove through the day. HDFC Bank and SBI were up over 1% each. Yes Bank added 2.3% on back of news report that the bank has collaborated with Indian Council for Agricultural Research and Punjab Agriculture University to design a customised agriculture insurance product for corn growers in Punjab.

DLF was the big mover in the realty space - up over 3% at Rs 234. Metal names like Jindal Steel, Hindalco as well as auto stocks - Tata Motors and Maruti moved up. Market heavyweight, Reliance, ended flat at Rs 867.

Meanwhile, Bajaj Auto dropped 1.3% at Rs 1,431 after posting its Q1 numbers. The two-wheeler maker has reported 21% growth in net profit at Rs 711 crore for Q1FY12. The company had a net profit of Rs 590 crore in the June quarter of the previous fiscal.

Reliance Communications shed 1.5% at Rs 97. Other communications stocks were sligtly better off with Bharti Airtel ending up 0.5% at Rs 396. MTNL edged up 0.7% at Rs 44.