Sensex ends static for 2nd straight session

Indian equity benchmarks closed virtually flat for the second day running, as investors chose to remain on the sidelines amid continued anxiety over the eurozone sovereign debt situation.

A sharp jump in food inflation for the penultimate week of October coupled with a downbeat reading on the nation's service sector output also weighed on the sentiment.

Corporate earnings continued to be mixed with TVS Motor managing to deliver decent quarterly numbers. SAIL and Welcorp reported rather disappointing results.



A Delhi court's refusal to grant bail to DMK MP Kanimozhi and seven other accused in the 2G scam also played a role in keeping investors on tenterhooks.

The BSE Sensex ended at 17,481, down 17 points over the previous close. It earlier touched a day’s high of 17,527 and a day’s low of 17,278. It opened at 17,430.

The NSE Nifty closed at 5,265, down 7 points over the previous close. It earlier touched a day’s high of 5,281 and a day’s low of 5,201. It opened at 5,241.

The advance-decline ratio was negative as the BSE Small-Cap and Mid-Cap indices finished flat.

The BSE Power, Realty and Oil & Gas indices were the notable winners while the BSE IT, Consumer Durables, Auto and Metals indexes were the main losers.

The BSE Capital Goods and PSU indices gained modestly. The remainder of sectoral indices on the BSE were rather subdued.

"The main indices did recover from intraday lows as European markets pulled back from a weak start on reports that Greek prime minister George Papandreou is facing opposition from his own cabinet on the proposed referendum for approving last week's EU deal. Papandreou has been asked to drop the proposed referendum or else step down from his post.

Outcome of the G-20 summit in France and the US monthly jobs data will be in the spotlight on Friday apart from the developments in Greece," says Amar Ambani, Head of Research, IIFL - India Private Client.

The Indian benchmarks slipped at opening, tracking steep losses in the Asian markets (barring China) after European leaders (France and Germany) warned Greece that it won't get the next tranche of aid unless it approves the bailout package unveiled last week.

Reports also suggested that the proposed referendum will decide whether or not Greece stays in the eurozone. The Greek PM has also been summoned to Cannes for the G20 meeting by France and Germany.

Meanwhile, the US Federal Reserve maintained status quo on interest rates and pledged to take more measures to support US economic recovery. However, it has cut GDP growth forecast while also upping the unemployment rate outlook.

The Nifty has held on to the important support of 5200 despite a string of bad news and mixed corporate earnings. There is no immediate threat to the intermediate up-trend as long as the Nifty sustains above 100 DMA of 5232 on a closing basis.

Important Global Data to Watch: ECB interest rate decision, US weekly jobless claims, US factory orders and services PMI data.