Budget countdown begins: Nifty ends above 5350
12 Mar 2012
The Indian market closed on a flat note on the first day of the action packed week. Banking stocks hogged the limelight of the day after RBI slashed CRR by 75 bps. Stronger-than-expected industrial output reduced hopes for a rate cut, which some analysts had previously said could have come as early as this week's RBI policy meeting. With the steam out already, the credit policy may after all turn out to be a non-event for the market.
Traders hence expect volatile trading, with a range of 5,200-5,500 for the 50-share Nifty this week, traders said.
"The market slipped as the IIP data clearly reflected that core sectors are not doing well. This is a data-heavy week and this kind of volatility is expected," said Jagannadham Thunuguntla, head of research at SMC Capital.
The Sensex shuts shop at 17587.67 up 84.43 points or 0.48% and the Nifty closed at 5359.55 up 26.00 points or 0.49%. About 1590 shares advanced, 1232 shares declined, and 581 shares remain unchanged.
January IIP came in at 6.8% versus market expectation of 2.2%, pulled up largely by food products and consumer non durables. Capital goods and durables continue to contract.
Top gainers on the Nifty were SBI, Larsen, Reliance, Reliance Power and Jindal Steel.