Sensex drifts lower in insipid trade

It was a dull start to the week for the Indian equity markets on Monday. After two straight sessions of selling, the Indian markets ended on a flat note amid choppy trades. FII selling in the past couple of sessions, coupled with the threat of inflation and hardening interest rates could be among the pressure points that are keeping investors in India on tenterhooks.



Most global equity markets were in the rally mode today after last weeks tumble. In comparison, the Indian markets underperformed today amid thin volume.

Realty, IT and the Telecom stocks were among the major losers. Even, the BSE Mid-Cap and the Small-Cap index were under pressure. On the other hand, Pharma and the Banking stocks saw some buying.

"The fact that the key indices are still trading below their 200-DMA is a big worry. Even if they do manage to surpass the key technical levels, there is no immediate certainty about the near term direction of the market. Among the major domestic concerns has been lack of meaningful progress on reforms amid a series of controversies. FII inflows too are yet to turn around," says Amar Ambani, Head of Research (India Private Clients) - IIFL.

The BSE Sensex ended at 17,839 losing 39 points. It had earlier touched a day's high of 18,007 and a day's low of 17,792. It opened at 17,984. While, the NSE Nifty lost 9 points to close at 5,365.

Most Asian markets closed with solid gains. Even the Chinese market was up despite the latest monetary tightening move by its central bank. The Japanese markets are shut today for a public holiday. European stocks also opened on a strong footing and US stock futures gained.