Sensex, Nifty end flat...Metal shares shine

The Indian market erased all the day's gains to close virtually flat, as investors remained wary of the murky global backdrop and the overhang of scandals in the domestic market.



Crude oil near US$90 per barrel stoked concerns about imported inflation even as 10-year benchmark yield climbed to 8.22% amid severe cash crunch.

Profit booking saw the broader market indices retreat from the day's high after a smart recovery in early morning trade.

In the global action, benchmarks in Asia closed mixed, with only the Chinese stocks managing moderate gains while the remaining indices finished lower. European markets slipped into red after a slightly higher opening.

US stocks could gain at start after Federal Reserve chairman Ben S. Bernanke said that the central bank could expand the bond purchase programme to spur growth in the world's largest economy and boost jobs.

Earlier, the Indian market opened firm, extending last week's gains while the non-index counters rebounded following the crash in the previous session. The undertone was spurred by the positive finish on Wall Street on Friday despite a weak jobs data.

Bernanke said that the Fed may commit more money in QE2 beyond the US$600bn announced last month. He also said that a return to a recession "doesn’t seem likely."

The BSE Sensex closed at 19,981, up 14 points over the previous close. It had earlier touched a day's high of 20,217 and a day's low of 19,944. It had opened at 20,038.

On the other hand, the NSE Nifty shut shop at 5,992 after hitting a day's high of 6,069 and a day's low of 5,981. It had opened at 6,033.

Tata Steel, Jindal Steel, Sterlite Industries, Hindalco, Tata Motors, JP Associates, RIL, BHEL, NTPC, Siemens, Sun Pharma, Cairn, Suzlon and Gail India were some of the top gainers in the Sensex and the Nifty.

SBI, RCOM, ICICI Bank, ITC, PNB, IDFC, Kotak Mahindra Bank, Axis Bank, Ambuja Cement, Bajaj Auto and BPCL were the notable losers in the two main indices.

Hero Honda lost ground amid reports that a few institutional shareholders may try to block the proposed exit of Honda from the Company at a discount and the proposed increase in the royalty rates to the Japanese auto giant. The institutional investors are also opposed to the sale of Honda shares to private equity firms below market price.

The BSE Metal index was by far the biggest gainer today, rising by 2.3%. Oil & Gas and IT indices gained 0.5-1% while select Power, Auto and Capital Goods stocks advanced. On the other hand, the BSE Banking index was the top loser, falling by 2.4%. FMCG and Realty indices were slightly closing lower.

The BSE Small-Cap index and the BSE Mid-Cap index lost 0.9% and ~0.4%, respectively.

The market breadth was negative on the BSE with 1,703 shares falling and 1,221 shares advancing.