Markets ends flat in see-saw trade

Directionless markets close the session on a flat note amid low volumes. The Sensex down by 9 points and the Nifty down by 6 points.

Major headlines

Food inflation at 9.01% versus 8.06%

India’s May car sales slowest in 2 years

HCL Infosystems, MTNL dip on CBI action in CWG scam



Indian indices

It again turned out to be a dull day, with no major movements seen in the key benchmark indices. The Indian markets ended the session on a flat note after moving around their previous closing levels all throughout the day. Absence of buying conviction amongst investors led to a tepid session, with the trading volumes seen tapering off. The markets were moving in the positive and negative territory and were stuck in a tight range. Global cues were also not supportive. A rise in food inflation is likely to keep the bulls under check

The Sensex began the trade at 18395 almost at the same level of the previous close and registered some gains to hit the day’s high of 18450 in early trade. Volatility was high, with the index touching the day’s low of 18327 in early afternoon trade. The Sensex struggled for direction and shut on a subdued note. The Sensex closed at 18385, down by 9 points and the Nifty stood at 5521, down by 6 points.

Bond and Rupee update

India’s 10-year bonds declined on speculation that investors will pare holdings of the securities before a government debt sale. India’s rupee traded near the highest level in a month on speculation that the global investors will buy local shares to profit from the nation’s relatively fast economic growth

Market sentiment

The market breadth was negative, with 1402 shares falling, 1388 shares rising and 137 shares traded unchanged.

Viewing volumes

India's leading integrated infrastructure finance player - IDFC was the most traded share, with over 0.70 crore shares changing hands on the BSE, followed by wind turbine major - Suzlon Energy (0.27 crore shares), India's Number 2 mobile carrier - Reliance Communications (0.19 crore shares), an industrial finance company - IFCI (0.19 crore shares) and India's second largest developer - Unitech (0.18 crore shares).

Sectoral & stock screening

Eight sectoral indices ended lower and rest five closed higher. In gainers pack, BSE CD rose by 1.44%, BSE CG surged by 0.92% and BSE Power went up by 0.30%. In losers pack, BSE Auto lost by 0.57%, BSE HC dipped by 0.32% and BSE IT fell by 0.15%.

Top three gainers in ‘A’ group - Mangalore Refinery & Petrochemicals shot up by 4.01%, IRB Infrastructure Developers gained by 3.50% and United Breweries advanced by 2.97%. Top three losers in ‘A’ group - Shriram Transport Finance Co slid by 4.37%, Asian Paints dropped by 3.45% and Sterling International Enterprises declined by 2.78%.

Global signals

The European markets were trading with some gains on Thursday. Weakness was seen in banks on concerns of more possible write-offs if Greece has to restructure its debt.

All the Asian indices ended lower on Thursday except Nikkei up by 0.19%. Hang Seng down by 0.23%, Straits Times fell by 0.17% and Shanghai Composite down by 1.71%.

The US stock index futures point to a higher opening on the Wall Street on Thursday.

Market Outlook: Weekly Jobless Claims data will be released in the US on Thursday.