Markets close volatile session on a flat note

It was another volatile session for markets, which ended on a flat note. The Sensex fell 26 points and the Nifty stood unchanged

Headlines for the day

Food inflation at -3.36% vs 0.42%

Welspun shares in demand

Hexaware Technologies says stake sale of business is speculative

Kiri Industries soars on fund raising plan



Indian indices

The Indian markets came under pressure in the afternoon session as selling in oil & gas, realty, metal, technology and PSU stocks weighed. Weak European cues also spooked sentiments. Heavyweights like RIL, Infosys, ONGC, NTPC, Bharti Airtel, Coal India and DLF were the negative contributors to the Sensex.

Food inflation turned negative in late December, a development that may prompt the Reserve Bank of India to go for rate cuts at its next monetary policy review later this month failed to enthuse markets. It again turned out to be a volatile session, with the markets closing on a flat note.

Sensex movements: The Sensex started the trade 10 points higher at 15893 as against the previous close of 15883. Then the index moved upwards to touch the day’s high of 15980 in the early trade. The index was trading higher amid volatility as the session progressed. In the afternoon session, selling pressure dragged the index in the red zone and touched the day’s low of 15809. The Sensex closed 26 points lower at 15857 and the Nifty closed unchanged at 4750.

Market sentiment:

The market breadth stood in favour of advances. Of the 2835 stocks traded on the BSE, 1443 (50.90%) rose, 1236 (43.60%) fell and 156 (5.50%) remained unchanged.

Viewing volumes:

Wind turbine major - Suzlon Energy was traded the most, with over 0.55 crore shares changing hands on the BSE. Following that, India's second largest real estate developer - DLF (0.40 crore shares), a Jaypee Group firm - Jaiprakash Associates (0.32 crore shares), Industrial finance company - IFCI (0.31 crore shares) and India's largest automobile company - Tata Motors (0.29 crore shares).

Sectoral & stock screening:

Among the 13 sectoral indices, nine closed lower. Top Gainers: BSE Auto rose by 1.21%, BSE CG up by 0.95% and BSE Bankex surged by 0.46%. Top Losers: BSE Oil & Gas fell by 1.68%, BSE Realty declined by 1.65% and BSE Metal down by 0.74%.

Among 'A' group stocks, top three gainers - United Breweries surged by 9.25%, Shriram Transport Finance Co. up by 9.16% and MMTC advanced by 6.78%. Top three losers - United spirits fell by 5.69%, Wockhardt down by 5.48%, and Gujarat State Petronet slipped by 4.18%.

Global indices

The European shares declined on Thursday (January 05, 2012), ahead of a French government bond auction that could dampen equity market sentiment if it fails to draw solid demand, as well as concerns about more capital raising in the banking sector.

The Asian stock markets swung between gains and losses before ending mostly lower on Thursday, hurt by worries that turmoil in Europe will keep the euro weak and hurt Japanese exporters.

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

Market Outlook: Data releases in the US on Thursday — Jobless Claims, EIA Petroleum Report, ISM Non-Manufacturing Index and ADP Employment Report.