Key benchmark share indices trimmed most of the day's gain in the latter half of the trading session on Friday to end flat on profit booking after the Comptroller and Auditor General of India's (CAG) tabled a report in the Parliament on allocation of coal blocks, aviation and mega power projects which rendered huge undue benefits to select companies.
The 30-share Sensex settled with marginal gains of 34 points at 17,691 and the Nifty ended up 3 points at 5,366.
In the broader market, both the BSE Small-cap and Mid-cap indices were flat with positive bias underperforming the Sensex.
Meanwhile, European stocks and the euro both gained on support from German Chancellor Angela Merkel for European Central Bank intervention to calm the euro zone's debt troubles.Among major European share indices, CAC-40, DAX and FTSE-100 were trading with marginal gains.
In Asia, the markets were broadly in the green. Japan's Nikkei share average struck a three-month closing high as risk appetite increased after comments from German Chancellor Angela Merkel suggested she supports the European Central Bank's efforts to tackle the euro zone debt crisis. The index closed up 0.8% along with Haag Seng, Shanghai Composite and Jakarta Composite gaining 0.1-0.7%.
Back home, among the sectoral indices on the BSE, FMCG, IT were the top gainers up over 1% along with Health Care, Auto and Consumer Durables gaining 0.5-0.7%.Meanwhile, Realty, Power and Metal indices were down 1.5%-2%.
Tata Power was among the top Sensex losers, down nearly 4% on reports that the Comptroller and Auditor General’s (CAG) has accused the government of favouritism and benefiting the company in some large power projects.
Larsen & Toubro was down 1.5% after the stock was quoted ex-dividend today. The board of directors of L&T recommended a dividend at the rate of Rs 16.50 per equity share for the financial year 2011-12.
Metal shares such as Jindal Steel, Tata Steel and Hindalco closed lower by 1-4%
The other notable losers included Gail India, NTPC, HDFC Bank, ONGC and Coal India down 0.6-1.7%
Tata Motors was the top Sensex gainer up 2.4% at Rs 240 after the auto major on Thursday said that global sales, including for luxury unit Jaguar Land Rover, were up 21% in July.
ITC which was up 1.4% at Rs 262 on buying support at lower levels after the stock witnessed selling pressure yesterday on concerns about regulatory action at home after reports that Australian court has approved logo ban on tobacco packs from December 1.
Software exporters such as Infosys and TCS were up over 1% each on back of positive economic data from the US. All these companies earn a major portion of their revenues from exports to the US.
Index heavyweight Reliance Industries closed flat after gains of nearly 1% in early trades. RIL recently said it has proposed to drill the first exploration well in almost five years in the flagging KG-D6 gas fields in an effort to reverse the falling output. The report by Goldman Sachs that RIL can potentially become a $100-billion in market capitalisation by 2016-17 also boosted sentiment.
Maruti Suzuki which was up 1% in early trades ended flat. The company said it would lift the month-long lockout and resume production at the violence-hit Manesar unit from August 21.
In the financial segment, mortgage lender HDFC and India's largest lender SBI which were up 0.3% and 0.1%, respectively, after rising nearly 1% in late morning deals.
Among other stocks, Reliance Power fell nearly 6% after the CAG said the company unduly benefited from a government decision allowing the power producer to use surplus coal from its captive block for another project it was not meant for.
The market breadth was negative with 1,498 losers and 1,344 gainers on the BSE.
