Directionless markets end flat amid tepid volumes

It was a dull session as the markets were struggling for specific direction all through the day amid tepid volumes and shut on a flat note

Major headlines

iGate set to buy Patni Computer in $1 billion deal

Surya Pharma rises on overseas brand acquisition

Tougher norms for housing finance companies



Indian indices

The investors in holiday mood chose to stay away from the markets, with the equity benchmarks seen stuck in a tight range since morning trade and struggling for a specific direction all through the day. The indices were hovering around their previous closing levels amid tepid volumes. Overall, it was a sluggish and choppy session.

Technology, HDFC Group, select healthcare, metal, power and Anil Dhirubhai Ambani Group (ADAG) companies' shares along with ITC and BHEL supported the Sensex to stay above 20,000-mark. However, Reliance Industries, Tata Motors, SBI, ICICI Bank, ONGC, SAIL, HUL, L&T, Ambuja Cements, Dr Reddy's Labs and BPCL witnessed selling pressure.

The Sensex began the session 28 points higher at 20056 and hit the day’s high of 20090 in initial trade. The index started to witness volatility since its opening. The Sensex was directionless and stuck in a tight range throughout the day. The Sensex hit the day’s low of 19982 in the afternoon session. The Sensex shut the dull session on a flat note.

Finally, the Sensex closed mere four points lower at 20025 and the Nifty shut at 5996, down by mere two points.

Market sentiment.

The market breadth was neutral for the second straight session. Of the 3,014 stocks traded on the BSE, 1,433 gained while 1,391 fell. Hundred and ninety stocks remained unchanged.

Viewing volumes

Wind turbine major - Suzlon Energy was the most traded, with over 0.49 crore shares changing hands on the BSE, followed by India's number 2 mobile carrier - Reliance Communications (0.38 crore shares), oil & gas exploration and production company - Hindustan Oil Exploration Company (0.25 crore shares), Indian shipbuilding company - Pipavav Shipyard (0.21 crore shares) and arm of Adani Group - Mundra Port And Special Economic Zone (0.27 crore shares).

Sectoral & stock screening

Of the 13 sectoral indices, seven closed higher while six closed lower. Among gainers, BSE FMCG surged the most by 0.63%, while BSE Health Care (HC) and BSE TECk rose by 0.47% and 0.34% respectively. Among losers, BSE Oil & Gas slid by 0.74%, followed by BSE PSU down by 0.46% and BSE Auto fell by 0.35%.

Among 'A' group stocks, top three gainers - Hindustan Oil Exploration Company surged by 9.45%, Bajaj Finserv up by 3.85% and Hindustan Copper gained by 2.85%. Top three losers - Patni Computer Systems slid by 3.01%, Indian Bank down by 2.69% and Godrej Consumer Products declined by 2.58%.

Global signals

European markets edged higher, led by healthcare and technology stocks, in holiday-thinned trade with London markets still closed.

The major Asian indices closed on a mixed note. Jakarta Composite ended 0.96% higher, while Shanghai Composite closed 1.74% lower.

The US stock index futures point to a slightly higher opening on the Wall Street.

Market Outlook: In the US, we have Case-Shiller Home Price Index, Consumer Confidence Index and Richmond Fed Manufacturing Index to hit the tape later this evening.