Heavy sell-off in global financial markets in the backdrop of uncertainties in Europe on Spain's bailout and concerns over worsening growth in major economies amid doubts about efficiency of the US Fed's third round of quantitative easing measures added to the negative investor sentiment.
Trading got off to a sluggish start with selling in heavyweights, metal, auto, capital goods along with power- related counters as euphoria over debt restructuring of SEBs started fading. The key index remained largely in negative zone but managed to trim most of its losses towards the end.
"Retail investors are taking out some profits after the recent reform-led rally and are cautious ahead of expiry of September derivatives contracts tomorrow. Strong capital inflows are preventing a major correction," traders said.
FMCG, pharma, oil & gas and select banking stocks attracted good buying interest. UB Group stocks continued to be on buyers' radar after the United Spirits confirmed that they are in talks with Diageo for stake sale.
The 50-share Nifty moved between a narrow range of 5,672.80 and 5,638.65 before ending at 5,663.45, a modest loss of 10.45 points, or 0.18 per cent, over the last close.
Bharti Airtel, IDFC, Coal India, Hindalco, Dr Reddy's, Tata Motors, Tata Steel, Reliance Infra, Asian Paint and DLF were the top percentage-wise Nifty laggards. However, ACC, Ambuja Cement, Cipla, Axis Bank, SBIN, ITC, Hero MotoCorp, PNB, Ranbaxy and Gail gained.
The turnover in cash segment dropped to Rs 14,369.65 crore from Rs 19,884.64 crore yesterday. Overall, 9,462.70 lakh shares changed hands in 66,34,012 trades. Total market capitalisation stood at Rs 63,67,263 crore.
