The Day after...Sensex, Nifty end flat

A day after Mumbai was rocked by triple bomb blasts, the Indian stocks managed to survive a wider sell-off on the bourses, as inflation did not accelerate as much as feared in June, bringing cheers to traders and investors alike. Overall, the trend was a little choppy as the indices witnessed a late selloff after a spirited comeback in the afternoon.

The Indian stocks ended almost unchanged on Thursday as investors also mulled overseas cues, which were not too exciting. A warning by Moody's to the US on its "AAA" debt rating spooked investors slightly.



After opening near day’s low, the NSE Nifty rose sharply to cross the 5,650 mark. However, markets were unable to build on the momentum as the index fell over 50 points from the day's high.

The early rally was led by Realty, Banking and Pharma stocks. On the other hand, IT and Telecom stocks were among the major laggards.

The Mid-Cap and the Small-Cap stocks ended with modest gains.

Bajaj Auto came out with its quarterly earning which were disappointing, with the margins falling below 20%. The stock slipped 1.5% to close at 1431. TCS, which would come out with results after markets, slipped 2.2%.

Technically, the Nifty managed to fill the falling gap. The index ended above the 100DMA for the second straight trading session. However, it failed to sustain above the 5600 level.

"As has happened so many times in the past, the markets managed to overcome the trauma of yet another terror strike in the heart of Mumbai. The overall sentiment is unlikely to be dented by the latest bomb blasts. Fundamentals of the economy are quite sound despite some moderation lately. Inflation for June came in below estimates. It could spike as the full impact of last month's fuel price hike was not captured by the June data. But, inflation, especially food prices, could soften if monsoon continues to be good. For now, the focus will remain on corporate earnings and offshore markets," says Amar Ambani, Head of Research, IIFL - India Private Clients.

Finally, the BSE Sensex ended at 18,595 almost unchanged. It had earlier touched a day's high of 18,803 and a day's low of 18,449. It opened at 18,563. The NSE Nifty closed at 5,599 adding 14 points.

Within the Sensex and Nifty, DLF, Tata Motors, ICICI, Jindal Steel, Maruti and L&T were among the top gainers.

TCS,Infosys, RCOM, Bajaj Auto, ONGC, NTPC and Hero Honda were among the notable losers.

The shares of Bharat Electronics, Repro India, Power Finance Corporation, Camlin and Sudar garments witnessed a spurt in trading volumes.

The shares of Amara Raja, Kajaria Ceramics. Pidilite and VST Industries touched new all time highs.

Market breadth on the BSE is positive with 53% shares advancing.