Sensex ends nearly flat...IT shares shine, ADAG pack down

Finally, there is some relief for the Indian market after a two-week drubbing. Although there wasn't any big rally, at least the main indices managed to eke out modest gains at the end of an extremely choppy and lackluster session. But, the broader indices had no such luck, as they extended last week's losses.



The third week of January began on a lackluster note. After starting on a flat note, the key indices turned volatile and were seen struggling for direction for most part of the day.

ADAG stocks were under immense pressure, stocks like Reliance Power, Reliance Capital, Reliance Comm, Reliance Infra and Reliance Medi works fell sharply.

Sentiment was hit as L&T was unable to meet street expectations. On the other hand, Axis Bank came out with better than expected quarterly earnings. All eyes are on the TCS results that will be announced shortly.

However, "rising inflation would continue to remain one of the biggest concerns for the markets and policymakers alike. The Government and the RBI are under pressure to take decisive steps to conquer the menace. Whether they attain any success remains to be seen. An EGoM is scheduled this week to take a decision on diesel and LPG prices besides a possible rejig in taxes", says Amar Ambani, Head of Research (India Private Clients) - IIFL.

The BSE Sensex gained 22 points to close at 18,882 and the NSE Nifty ended almost unchanged at 5,654.

Among the BSE sectoral indices, the BSE Realty index was the top loser, the index fell 2.4%, BSE Metal index was down 1.3% and BSE Capital Goods index was down 1.2%. Even the broader indices were under pressure, the BSE Mid-Cap index was down 1.4% and BSE Small-Cap index was down 1.4%.

Among the major gainers were, BSE IT index was the top gainer the index gained 1.8%, followed by BSE Teck index up 1.3% and the BSE Consumer Durables index was up 0.2%.

The European indices were trading slightly in the red as well, the DAX in Germany was down 0.2%, and the CAC 40 index in France was down 0.3% and FTSE index was flat.

Outside the frontline indices, the big losers in the broader market were Glenmark Pharma, JP Associates, Pantaloon and Jet Airways. On the other hand, gainers included OFSS, Bank of India, Jindal Saw and Idea.

HDFC, Infosys, Cipla, TCS, Bajaj Auto, Bharti Airtel, HDFC Bank, Kotak Bank and Cairn India are leading in the Sensex and Nifty.

Reliance Infra, Jaiprakash Asso, RComm, Sterlite Inds, DLF, Hindalco Inds, L&T, Hero Honda, Tata Power, Jindal Steel, SAIL and Sesa Goa are the notable losers in the Sensex and Nifty.