Markets recoup losses, end flat

Key share indices ended flat on Monday after a volatile session, as market recouped most losses on the back of gains in index heavyweights such as Reliance Industries, State Bank of India and ITC.

Dealers said sentiment turned positive after Reliance Industries' announcement to acquire manufacturing assets of Malaysian polyester producer Hualon for an undisclosed amount. The stock advanced 1 per cent to 1,986 rupees.

"Market essentially rose on news of Reliance buying a Malaysian company. There was also some short covering periodically, and it is evident from the Nifty (September contract) discount, which narrowed down to 10 points from 20 points earlier," said a dealer with Mafatlal Securities.

Bombay Stock Exchange's 30-share Sensex ended at 15596.83, up 6.41 points from Friday. Intraday, it moved between 15363.53 and 15626.28. National Stock Exchange's 50-share Nifty ended at 4507.85, down 1.65 points.

Intraday it moved between 4452.95 and 4515.25. Turnover on both the exchanges was roughly Rs 13,000 crore against Rs 15,700 crore Friday.

CNX Midcap Index and S&P CNX 500 Index ended with 0.4 per cent and 0.1 per cent gain respectively.

Reliance Petroleum, up 5 per cent at Rs 129, was the top gainer on Nifty. "Towards the end, there was some short covering in the stock. Some fund buying also happened," said a dealer.

The BSE FMCG Index rose 2 per cent, buoyed by gains in ITC, which rose 4 per cent to Rs 185 on value buying, dealers said.

Oil retailers maintained gains throughout the session as hopes increased the government would hike fuel prices soon. Hindustan Petroleum Corp and Bharat Petroleum Corp ended 4 per cent up each at Rs 241 and Rs 315 respectively.

Gains in heavyweight State Bank of India, up 1 per cent to Rs 1,640, also helped the Bank Nifty recoup losses to end with a 0.4 per cent rise. Meanwhile, Punjab National Bank rose 1 per cent to Rs 493.

Bharti Airtel ended up 0.4 per cent at Rs 851 after its unit got a license in Singapore to offer international carrier facilities from the country.

Shares of information technology companies were worst hit, as the rupee rose against the dollar amid concerns the US economy, from where India IT companies derive an average of 60 per cent of their revenue, is headed for recession.

HCL Technologies, down 5 per cent at Rs 294, was the worst hit on Nifty. Tata Consultancy Services and Wipro were down 3 per cent each at Rs 1,047 and Rs 465 respectively. Index heavyweight Infosys Technologies slid 2 per cent to Rs 1,870.

Index heavyweight Oil and Natural Gas Corp ended down 2 per cent to Rs 832 after rising 3 per cent in the previous session. Gammon India ended down 9 per cent to Rs 421, after a flyover the company was constructing in Hyderabad collapsed Sunday.

The Hyderabad police have registered a criminal case against the company.A five-member state panel will also probe the cause of the collapse and is likely to submit its report in three days.