Nifty closes flat with positive bias after hitting 6200
04 Oct 2010
Another milestone of touching 6200 was breached by Nifty in the early trade on Monday but it could not hold on to it for long. After trading in positive terrain for sometime, it slowly wiped out nearly 75% of gains on profit booking in the second half of trade and closed with modest gains.
Metal, healthcare companies' shares along with Reliance Industries, HDFC, ICICI Bank, Reliance Communications, M&M, Tata Motors, Wipro, DLF and ACC witnessed buying interest, which helped the markets to stay in positive terrain. However, the sell-off in ITC, ONGC, Bharti, L&T, Infosys, NTPC, TCS, Sterlite, Hero Honda, SBI, Bajaj Auto, HDFC Bank, HUL and Tata Power erased 62.65 points gains on Nifty and 231.01 points on Sensex.
Weak global cues also forced the market to drift from day's high. European markets like France' CAC, Germany's DAX and Britain's FTSE were trading 0.5-1% lower, at the time of closing of Indian equities. The Dow Jones and Nasdaq futures were down 0.5% each. Even Nikkei slipped 0.25% in late trade.
The markets were extremely volatile in second half of trade. The 30-share BSE Sensex closed at 20,475.73, up 30.69 points and the 50-share NSE Nifty rose 16.05 points to 6,159.45.
The markets consolidated after hitting 6200 in early part of the trade but showed signs of moving towards previous highs. Devina Mehra of First Global says the rally has been on expected lines and the bourses are likely to make a new high. "We have been saying for the last few months that the Indian market would be an outperformer. Emerging markets, in general, would outperform the developed world and within that India would be an out performer which has happened," she said.
Heavyweight Reliance Industries supported the Nifty a lot; gained 1%. GAIL rose 0.76% while ONGC drifted lower in afternoon trade and ended 0.76% down. Cairn India was down 0.4%. Sesa Goa was one of the biggest gainers today; rallied 5.3%. In metal space, Hindalco, Tata Steel and SAIL were up 0.3-0.76% while Sterlite declined 1.6%.