Sensex ends flat amid weak global pack

Helped by fag-end buying in power, realty and some banking stocks, the BSE benchmark Sensex today pared most of the losses suffered in the afternoon session and ended flat amid negative global sentiment.

Cutting short its two-day gains, the 30-share barometer of the Bombay Stock Exchange ended at 20,104.86, down by 12.52 points, or 0.06%.

The National Stock Exchange's wide-based Nifty Index too settled with a nominal loss of 0.105 at 6,029.50.

After slipping to a low of 19,981.96 in the afternoon trade, Sensex managed to re-conquer the 20,000 levels towards the end. The late bounce was led by power, banking and capital goods. Even realty and metal stocks were among major gainers.

The market opened on a flat note taking cues from global markets and session was choppy as traders roll over positions ahead of the expiry of derivatives contracts for the September month on Thursday.

Global cues were also not supportive and almost all the major indices globally, Asian as well as Euopean, were in the red.

"Currently, our market is trading at a high level and in such a scenario minor profit booking is not a surprise but we are bullish on Indian stocks," Anand Rathi Securities vice-president research (retail) DD Sharma said.

Reliance Industries, which holds the maximum weight in the Sensex, fell by 1.12% to Rs 998.25.

HDFC was the worst performer in the BSE-30 pack and lost nearly 2%. ICICI Bank fell by 0.40%, HUL by 0.83% and Maruti by 0.75%. 

Stock specific action was more prominent and most of the
sectors were mixed.

IT stocks were also under pressure, with Infosys falling 0.29%, TCS 0.74% and Wipro 0.66%.

Metal stocks were in red in early trade but rise in Tata Steel and Jindal Steel cushioned some losses suffered by Sterlite and Hindalco. 

Sterlite closed 0.73% down and Hidalco by 0.74%. On the other hand Jindal Steel rose 1.33% and Tata Steel by 0.95%.

Metal stocks were under pressure as metal prices dropped overseas and concern grew that European government finances
are worsening, brokers said.

In the Sensex components, 15 stocks finished with gains, while 15 settled in the red.

M&M surged by 2.54%, DLF by 2.37%, NTPC by 2.31%, L&T by nearly 1%.

Most of Anil Ambani Group firms, including RCom and R-Power, ended higher, a day when the group's chairman Anil Ambani floated ambitious plans for shareholders.

R-Infra jumped 2.52% and RCom by 0.41%. RCom today said the company may sell 26% stake and may list its telecom tower subsidiary Reliance Infratel to become debt free.

Among the financial stocks, HDFC Bank rose by 0.50% and SBI by 0.33%. Tata Power rose 0.43% and BHEL 0.47%.

Analysts said they are hopeful that domestic market will continue to go up in coming days on back of huge FII inflows, that has crossed the $17.66 billion mark so far this year.   

"India's economic growth has continued along its robust path so far in 2010 and is likely to lift further in 2011 provided risks around high inflation and the currently fragile global recovery can be managed," S&P said today. 

Resurgent exports and capital inflows add to the positive story, it added. 

Asian stocks dropped, led by declines in Japan, as metal prices dropped and concern grew that the European government finances are worsening.

US stocks fell overnight, trimming gains in the best September for the Standard & Poor's 500 Index since 1939, and the euro slumped as yield spreads for Irish and Portuguese debt jumped to record closing levels.