Sensex averts steep fall…Nifty holds above 5500

The Indian markets ended the day with modest losses as the benchmark indices erased most of the early losses that had resulted from the growing political turmoil in Egypt. After opening with a gap down, the key Indian indices recouped early losses gradually amid a volatile session. The NSE Nifty managed to fill up the negative gap led by the ONGC, BHEL, L&T and RIL. Even the broader indices pulled back from the lows of the day in late trades.



In the day’s important news, the core sector growth, as measured by the index of six key infrastructure industries, stood at 6.6% in December 2010 versus 3.0% in November 2010. Separately, the government revised the GDP growth rate for FY09 and FY10 due to changes in the WPI and IIP.

"There are a few market observers who see the Nifty cracking a bit further. That may or may not materialise but the short point is betting on a swift turnaround at this juncture could be foolhardy. Having said that, another correction of 5% or so will certainly make the Indian market attractive from a medium to long-term perspective." says Amar Ambani, Head of Research (India Private Clients) - IIFL.

The BSE Sensex lost 68 points to close at 18,328 and the NSE Nifty was down 6 points to end at 5,505. The Sensex touched an intraday low of 18,038 and a day's high of 18,395. The Nifty on the other hand hit an intraday low of 5,416 and an intraday high of 5,526.

Among the BSE sectoral indices, the BSE Realty index was the top loser, the index lost 2%, BSE FMCG was down 2% and BSE IT index was down 1.6%. The BSE Mid-Cap index lost 0.3% and BSE Small-Cap index 0.7%.

Outside the frontline indices, the big losers in the broader market were Jain Irrigation, Nestle, Voltas and PFC. On the other hand, gainers included Canara Bank, LITL, Crompton Greaves and BOB.

The European indices were trading marginally down. The DAX in Germany, the FTSE in London and the CAC 40 in France were all down ~0.3% each. Most Asian markets finished lower with the exception of China as investors worried about the unrest in Egypt and its possible ramifications for the global economy.