Sensex ends flat; TCS, Infy Wipro take a hit

MUMBAI: The benchmark Sensex on the Bombay Stock Exchange on Thursday ended almost unchanged after recovering over 200-point mid-session losses but the blue-chip IT stocks suffered hefty losses on smart rise of the rupee against the US dollar.
    
Markets failed to keep the momentum of two-day winning race, which saw the BSE barometer rising by handsome 680.26 points, despite inflation declining to seven-month low of eight per cent.
    
Brokers said funds treaded a cautious path after Reserve Bank Governor D Subbarao's comments that the next financial year coulee be a more difficult year. However, mid-cap and small-cap stocks surged with retail investors showing keen interest in buying.
    
Marketmen said the bellwether index one hand gained on expectations of more incentives for the economic growth, on other a fresh fall in stocks of software exporting companies following a rise in Indian rupee kept the market volatile.
    
The 30-share barometer settled the day at 9,645.46, lower by 9.44 points or 0.10 per cent from its previous close.
    
The Sensex had opened the day stronger by nearly 90 points but barely after an hour it went down on profit selling.
     
On alternate bouts of buying and selling, which were influenced by mixed turned in Asian markets in spite of a rally in the Wall Street, the bellwether index moved between 9,746.01 and 9,441.97 points. US stocks ended higher overnight on heightened expectations of bailout package for the auto majors by the Federal Government.
     
Most of Asian benchmark indices, including Japan's Nikkei 225 and Hong Kong's Hang Seng, also closed flat on Thursday while European markets were also trading unchanged in their early trade.
    
The 50-share Nifty of NSE also ended marginally down by 8.10 points at 2,920.15 from its last close.
    
The IT sector index emerged as the worst performer among all indices on Thursday by shedding 3.90 per cent, with TCS, the largest software developer, tanking 6.24 per cent, the most in almost four weeks. Infosys Technologies, another IT blue-chip declined 3.23 per cent to its lowest since November 20. Wipro too closed lower by 4.45 per cent.
    
Marketmen attributed the fall in IT stocks to the smart rise in the rupee value against the greenback amid bleak global economy. The domestic currency has been on a continuous rise on indications of more capital inflows. They said a surge in the local currency could impact the software companies as most of them earn a good chunk of their revenues from the US.
    
FIIs have turned net buyers in equity and bought shares worth Rs 1,910.55 crore (including Wednesday's provisional number) in the last four days.
    
Realty sector rose on anticipation of the government announcing incentives for housing sector. Surging for the third successive day realty index closed higher by 2.12 per cent. However, sectoral major DLF Ltd was down 2.28 per cent.
    
Among other Sensex-based shares, Hindalco declined by 4.38 per cent, BHEL by 2.75 per cent, DLF by 2.28 per cent, ONGC by 1.77 per cent and Tata Motors by 1.56 per cent.
    
However, Jaipra Asso rose by 10.63 per cent, Sterlite Ind by 8.43 per cent, Rel Com by 4.80 per cent, ACC by 2.81 per cent, RIL by 2.58 per cent and ICICI Bank by 1.58 per cent.
    
Although the market ended in the red, the total breadth remained positive as 1,557 counters ended with gains while 911 with losses.
    
Total trading volume increased further to Rs 4,638.42 crore from Rs 4,180.57 crore on Wednesday. RIL continued to be highest traded share with the turnover of Rs 416.25 crore followed by DLF (Rs 234.14 crore), Rel Capital (Rs 216.72 crore), SBI (Rs 213.54 crore) and RNRL (Rs 168.56 crore).