Nifty ends flat on expiry; exim policy boosts gems, textile

The Nifty closed the last day of August series on a flat note after seeing huge volatility throughout the session. It crossed the 4700 mark during the day but closed well below that level. It was the sixth consecutive day of positive closing for the markets.

Capital goods, pharma, and select technology stocks were supportive while private banking and power counters were draggers. There was a mixed trend in realty, FMCG, telecom and auto stocks.

The equity benchmarks started on a weak note following weak Asian cues but did not extend the losses. They remained rangebound for the whole day and did not show any significant move on either side. Among the Asian markets, Nikkei lost 1.5%; Shanghai, Jakarta, Hang Seng, Kospi and Taiwan Weighted fell 0.4-1% while Straits Times was up 0.5%. European markets and the US index futures were flat in trade at the time of closing of Indian equities.

The 30-share BSE Sensex closed at 15,781.07, up 11.22 points, after seeing an intraday high of 15,853.71 and low of 15,685.49. The 50-share NSE Nifty went up just 7.35 points, to settle at 4,688.20. It touched a day's high/low of 4707.90 and 4645.15, respectively.

Commerce Minister unveiled the Foreign Trade Policy today. There was not any big announcement in the policy barring small benefits for textile and diamond industries. He said the policy would continue with DEPB (Duty Entitlement Pass Book) scheme for exporters and continue with section 10A benefit for IT sector exports.

He has also introduced new measures like the zero-duty Export Promotion Capital Goods (EPCG) scheme. The special thrust would be given to employment oriented export units and was aiming $200 billion export by March 2011, he said.