The market opened on a positive note amid cautiouness ahead of the inflation data as well as lack of global cues. Frontline heavy-weights, bank, capital goods and pharma counters supported the initial movements.
The key index mostly traded in a tight range with high volatility before slipping into the red. Traders and investors were waiting for headline inflation numbers, the key trigger for the market ahead of RBI's policy review on July 31.
Lower-than-expected June inflation data helped the market to rebound from intra-day lows. The headline inflation eased to 7.25 per cent in June, but food inflation surged to 10.81 per cent.
The recovery was short-lived as the market once again faltered in late afternoon led by technology, metal, FMCG, auto and bank stocks.
Despite a fall in June inflation, the numbers are way above the apex bank's comfort levels, giving limited room to to RBI to cut monetary policy rates at this juncture, as poor monsoon can accelerate inflationary pressure, traders said.
The 50-share Nifty fluctuated between a high of 5,246.85 and a low of 5,190.45 before closing at 5,197.27, a fall of 30 points, or 0.57 per cent, over the last close.
Tata Steel, TCS, Tata Motors, Jindal Steel, Reliance Infra, Infosys, Sesa Goa, Gail, Tata Power and DLF were the top percentage wise losers from the Nifty pack. Bharti Airtel, Maruti, Dr Reddy's, Axis Bank, Bank of Baroda, Cipla, SBIN, PNB, ONGC and Sun Pharma ended with gains.
The turnover in cash segment dropped to Rs 7,977.60 crore against Rs 8,869.08 crore last Friday. In all, 5,175.21 lakh shares changed hands in 44,04,158 trades. Market capitalisation stood at Rs 59,96,787 crore.
