Markets end choppy session flat; broader indices outperform

It was another extremely volatile day for the benchmark indices ahead of F&O expiry on Thursday. Banking stocks along with HUL, Reliance Industries, Infosys, L&T, Grasim, Idea, ABB, Ranbaxy Labs and Hero Honda kept the markets under selling pressure.

However, buying was seen in power, realty, telecom, cement and metal stocks. The broader indices outperformed the benchmark indices; gained 1-1.7%. Turnover crossed the Rs 1 lakh crore mark again.

Credit Policy was the non-event for the markets today, as RBI maintained the status-quo. RBI (Reserve Bank of India) kept the key rates (Credit reserve ratio at 5%, repo at 4.75% and reverse repo rate at 3.25%) unchanged. However, it has increased its growth projections. FY10 GDP has now been maintained at 6% with an upward bias. Inflation continued to be higher on RBI's radar. It is now projected at 5% from the earlier 4%.

Sonal Varma, India Economist, Nomura Financial Advisories & Securities, feels today status quo from RBI suggests they are done with what they had to do on the policy front. "The key question going forward will be how long will it maintain this sort of accommodative or neutral policy environment."

Nilesh Shah, Deputy MD, ICICI Prudential AMC, said the policy was in line with the expectations. Applauding the central bank's efforts, he said, "RBI has been managing the tough economic environment well. It is a policy which is trying to take away the accommodative stance and bring it to neutral gear by letting market forces play out and let the economy gain its own momentum."

The 30-share BSE Sensex lost 43.10 points, to settle at 15,331.94, after seeing an intraday high of 15,463.46 and low of 15,240.53. The 50-share NSE Nifty went close to 4600 and touched an intraday high of 4599.90, before closing at 4564.10, down 8.20 points. It touched a day's low of 4529.15. The Nifty July future ended with 2 points discount (provisional data).