Sensex Closes Flat On Profit Booking, Capital Goods Stocks Surge
MUMBAI: In listless trade, benchmark BSE Sensex ended about eight points up at 27,403.54 after surrendering early gains on the back of weakness in global markets and profit-booking by foreign funds.
Gains in shares of BHEL, NTPC, Dr Reddys and Axis Bank helped the index complete its third straight session of rise.
Traders said initial gains of about 83 points were mostly frittered away on profit selling. While the mood was initially positive after Cabinet on Monday made it easier to acquire land in key sectors, weak sentiment across-the-globe on a sell-off in commodities and political uncertainty in Greece led to emergence of caution, they added.
Refinery, power and metal counters were at the receiving ends while consumer durables, capital goods and banking shares attracted good buying support.
Second-tier stocks too were in keen demand on good buying support from retail investors. Small and mid cap indices outshined the Sensex.
The BSE 30-share indicator resumed at the day's high level of 27,478.30, but later declined to a low of 27,312.29 before concluding at 27,403.54 - a minor rise of 7.81 points or 0.03 per cent. In previous two days, it rose 187.12 points.
"Lack of market cues and liquidity drench owing to festive season in the West kept markets sideways. Optimism over new ordinances kept Indian markets mildly bullish but the same failed to raise market risk appetite as FIIs were seen cutting their positions from equity and debt as well," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
The broader 50-issue CNX Nifty of the National Stock Exchange (NSE)also edged up by 1.95 points, or 0.02 per cent, to 8,248.25.