Mumbai: The market closed flat on Monday after a sharp recovery in the second half of trade. Equity benchmarks tried to get back into green for a while before the closing, but cautious European markets ahead of Angela Merkel and Nicolas Sarkozy meet weighed down over the market. Overall expectation of the third quarter earnings kept the market nervous on Monday.
The Sensex fell 34.08 points, to close at 15,814.72 and the Nifty declined 4.10 points, to end at 4,742.80 after showing about 50 points recovery from the day's low.
Ambareesh Baliga, COO of Way2Wealth feels the market is in a range of 4650-4700 on the lower side and possibly 4850 on the higher side. "Unless we break either of these decisively, we will not really see a major movement," he said.
Index heavyweights Reliance Industries and Bharti Airtel fell 1 per cent and 3 per cent, respectively. Among financial and banking stocks, SBI tanked 2 per cent and HDFC was down 0.8 per cent while HDFC Bank gained 0.8 per cent and ICICI Bank was flat.
In the auto space, Tata Motors and Bajaj Auto fell 1.5% each; Hero Motocorp and M&M were marginally lower whereas Maruti Suzuki gained 1.8 per cent.
However, the rally in BHEL and L&T has limited the downside, which gained 3 per cent and 0.6 per cent, respectively.
Shares of JSPL, Cipla, Tata Power, Maruti and Sun Pharma were up 1-3 per cent.
The broader indices outperformed benchmarks - the BSE Midcap Index was up 0.6 per cent and Smallcap up 1.4 per cent. Advancing shares outnumbered declining by 1641 to 1080 on the BSE.
The leaders of France and Germany will discuss new fiscal rules in order to help lift the eurozone from its debt mess. European markets were mixed ahead of this meet.
John Woods, managing director and chief investment strategist, Citi Pvt Bank says, Merkel-Sarkozy meet is unlikely to throw a positive surprise. “I think the market’s going to maintain a wait and see attitude. I expect downward pressure on currencies and equities,” he adds.
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