Directionless trade ends flat

Volatility ruled the roost as the key benchmark indices swung between gains and losses to close the session on a flat note

Major headlines

FMCG shares slip as IMD lowers monsoon forecast

MRF falls sharply after lock-out at Kerala plant

Orchid Chemicals unit clears USFDA inspection




Indian indices

Overall it was a range-bound trade. The Indian markets struggled for direction since the start of trade, moving between gains and losses, due to lack of investor participation in absence of any positive cues. The markets ended the dull session on a flat note. A forecast of a below normal monsoon outweighed optimism that Greece may avoid a default on its debt. Continuous selling in consumer durables, realty and FMCG stocks dragged markets

Sensex movements: The Sensex began the trade at 17659, up by 99 points tracking gains across the globe and soon hit the day’s high of 17679. The index failed to hold initial gains and remained directionless throughout the day. In afternoon trade, the Sensex touched the day’s low of 17492. The Sensex shut shop at 17551, down by 10 points and the Nifty stood at 5278, up by 2 points.

Bond and Rupee update

India’s 10-year bonds fell for a second day on speculation that a sale of government debt this week will reduce demand for existing securities. India’s rupee rose to a one-week high after Greek Prime Minister George Papandreou won a vote of confidence, tempering concern over Europe’s debt crisis and boosting demand for emerging-market assets.

Market sentiment

The market breadth stood in favour of declines as 1,797 stocks tumbled and 1,036 advanced. However, 127 stocks remained unchanged.

Viewing volumes

Wind turbine major - Suzlon Energy was traded the most, with over 0.44 crore shares changing hands on the BSE. It was followed by India's second largest real estate developer - Unitech (0.42 crore shares), a diversified business focus on Infrastructure and Urban Infrastructure projects - GVK Power & Infrastructure (0.26 crore shares), an infrastructure firm - Lanco Infratech (0.22 crore shares) and a Jaypee Group firm - Jaiprakash Associates (0.17 crore shares).

Sectoral & stock screening

On the losers’ side, BSE Consumer Durables (CD) was the biggest loser falling by 3.83%, followed by BSE Realty down by 2.29% and BSE Fast Moving Consumer Goods (FMCG) slipped by 0.67%. On the gainers' side, BSE Oil & Gas went up by 0.28%, followed by BSE Capital Goods (CG) rose by 0.24% and BSE Bankex surged by 0.06%.

Among the 'A' group shares, top three gainers - HMT surged by 6.76%, Bhushan Steel rose by 4.55% and Jain Irrigation up by 3.48%. Top three losers - Titan Industries declined by 6.23%, GVK Power & Infrastructure down by 5.34% and Lanco Infratech slipped by 5.26%.

Global signals

The European shares retreated on Wednesday, with investors taking a cautious stance ahead of a meeting of the US Federal Reserve that might provide cues about the central bank's next moves to support the economy.

All the Asian markets closed on a higher note on Wednesday except Straits Times.

The US stock index futures pointed to a lower open on the Wall Street on Wednesday.

Market Outlook: FOMC Meeting announcement and US fed Chairman Press Conference will be held in the US on Wednesday.