Markets end flat; metals, telecom gain; auto, bank, IT lose

19 January 2009

It was a lacklustre session for the benchmark indices; there were thin volumes on the bourses but the market breadth remained on the positive side. The markets ended flat but were mildly on the higher side amid volatility for a major part of the day on the back of positive global cues, as the United Kingdom government unveiled a second bank bailout plan today.

Shares of metal, oil and exploration, telecom and capital goods companies supported the markets. Banking, technology, auto and select power stocks dragged. Midcap and smallcap stocks also lent support to the market breadth.

Among the frontliners, Jaiprakash Associates, Sterlite Industries, ONGC, Bharti Airtel, Tata Steel, Unitech, Zee Entertainment, Suzlon Energy and SAIL were major gainers while M&M, Grasim, ICICI Bank, Wipro, Tata Motors and Maruti Suzuki were top losers.

The 50-share NSE Nifty tested the 2,850 level during the day and hit an intraday high of 2868.20. It closed the day at 2846.20 up 0.63% or 17.75 points over the previous close. The BSE Sensex gained just 5.98 points or 0.06%, to settle at 9,329.57 after touching a high/low of 9,409.51 and 9,273.47 respectively.

SA Narayan, Managing Director, Kotak Securities, feels volatility will prevail due to mixed results season and that continued global liquidity crunch will spill over into Indian equities. He feels Sensex is likely to trade in a wide range of 8,500–11,500 for the next six months.

BSE Realty index outperformed other indices - it rose 2.17% or 37.32 points at 1,761.08. Akruti City and HDIL were up 12.2% and 8.33% respectively. Unitech surged 5.98%, as the company's MD said they have repaid 75-80% of Rs 2,500 crore loan due by March and it has no major debt repayments due to MFs till March-end. However, DLF ended flat.