The benchmark indices closed flat, with a positive bias, after moving between the positive and negative terrain throughout the day. At close, the BSE benchmark index was up 30 points at 19,121 and the Nifty gained marginally by 11 points at 5,740. However, the broader markets gained strength towards the last hour of trade, adding nearly 0.3% as against the Sensex's 0.1% gains.
Earlier in the day, the markets had a lacklustre start on the back of weak Asian markets and the US markets closing down over 1% after rating agency Standard & Poor downgraded its outlook on the US sovereign rating to negative from stable. From thereon, the Sensex moved south to touch a low of 18,976, down 115 points from yesterday's close. However taking support at this level, the BSE benchmark index broke into the positive territory as the IT and Banking rebounded and touched a high of 19,201- up 225 points from the day's low.
With no triggers whatsoever, the Sensex moved within a tight range of 100 points. However, in the afternoon trades, the markets witnessed a sudden fall as heavyweight, Reliance Industries plunged over 1% on reports that the gas output from the Panna-Mukta and Tapti fields owned jointly by the BG Group, Reliance and ONGC has declined by around 30%, but went on to recover in the last hour of trade.
Commenting on the volatility seen through the day, Jagannadham Thunuguntla, strategist & head of research, SMC Global Securities opines, "The rally from 5200 to 5900 levels should not have happened given the global problems. Now, the markets have started correcting and the selling pressure will continue. Even the corporate results are not particularly exciting. There is no reason for markets to sustain the gains."
Among the sectoral indices on the BSE, Teck and Oil & Gas lead the gains by adding over 0.6% each followed by Consumer Durables and Bankex. On the other hand, FMCG and Power indices lost 0.8% each and were the major laggards for the day. Zee Entertainment up 8%, Jagran Prakashan, HCL Technologies, IBN18 Broad up 2% each were the movers in the teck space which gained over 0.8% after three days of lacklustre trades.
Bharti Airtel (Rs 376) and Reliance Communications (Rs 108) up 2% each were the top gainers among the Sensex stocks, followed by L&T (Rs 1707), HDFC Bank (Rs 2348), TCS (Rs 1165) and DLF (Rs 236), which added 1% each.
Among the losers were Hero Honda (Rs 1777) down nearly 5%, BHEL (Rs 2135), Hindustan Unilever (Rs 276) and ITC (Rs 188), down 1-2% each were the major losers on the Sensex.
Pipavav Shipyard up nearly 9%, BGR Energy, Wockhardt, Shree Global Tradefin and Indiabulls Financial Services added between 4-6% were the top gainers in the midcap space.
In the smallcap space, Himachal Futuristic Communications and Mirc Electronics up 11% each were the major movers, followed by Subex, Falcon Tyres and Development Credit Bank, up 8-10% each.
The market breadth was negative. Of the total 2981 stocks traded on the BSE, 1476 stocks declined while 1389 advanced.
