Equity indices, after witnessing huge volatility throughout the trading session, closed Thursday on a flat note. Domestic markets opened the day on a positive note and traded in the green. However, during the final hours of trading, there was intense selling due to lack of cues in the market.
The 30-share Sensex of the Bombay Stock Exchange (BSE) lost 11.69 points or 0.08% to close the day at 13,757.46 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) added 2.05 points or 0.05% to end the day at 4,080.95 points.
Dealers in the country?s stock market say, in the past few days there has been intense selling from foreign funds and lack of proper cues coupled with fears of quarter earnings in the coming days impacted the markets. Apart from that, inflation, which stood at -1.55% for the week ended June 27 compared with -1.3%, also had some impact in the market.
Alex Mathews, head, Research Centre ? Geojit BNP Paribas Financial Services Ltd, said, ?Renewed buying interest during the final hours of the trading in the beaten-down sectors like the realty and metal helped in the recovery. However, markets soon turned volatile but held within the positive region most of the time and finally closed near the previous close.?
The International Monetary Fund (IMF) came out with the latest World Economic Outlook quoting that a stronger recovery is seen, with growth hitting 2.5% in 2010 as against 1.9%, which was reported by IMF in April.
An analyst from a leading broking house said, ?There was some buying seen in the metal and FMCG sector stocks while selling was seen in the banking and realty stocks. Now, the markets will be waiting for quarter results of Infosys on Friday, which might set some cues for the markets in the coming days.?
The breadth of the market remained negative as out of 2,638 stocks traded in BSE, 1,078 stocks advanced, 1,462 stocks declined while 98 stocks remained unchanged. In the Sensex, 14 stocks closed the day in green and 16 stocks closed the day below the dotted line.