Markets end flat amid choppy trade

Mumbai: Indian equities gave up early gains to settle lower on Thursday due to sell-offs mainly in banking stocks after the Reserve Bank directed banks to link interest rates on all new loans with external benchmarks.

Losses on the indices, however, were restricted by emergence of buying in stocks of somewhat relieved auto sector after Union Transport Minister Nitin Gadkari assured the crisis-hit industry of all possible support.

After rising over 174 points in early session, the 30-share Sensex failed to sustain the momentum and gave up all gains to end 80.32 points, or 0.22 per cent, lower at 36,644.42.

It hit an intra-day high of 36,898.99 and low of 36,541.88. The broader Nifty, on the other hand, ended 3.25 points, or 0.03 per cent, higher at 10,847.90.

Banking and IT stocks were mainly responsible for bringing the benchmark indices -- Sensex and Nifty -- under pressure. A significant rise in the rupee value was the reason behind the selling in shares of export-oriented IT companies.

Sectorally, BSE oil and gas, metal, auto, utilities, power, industrials, healthcare and energy indices rose up to 2.47 per cent.

While BSE realty, finance and banking indices fell up to 1.77 per cent. Broader BSE midcap and smallcap indices outperformed benchmarks, rising up to 0.72 per cent.

Market opened in green following positive global cues from Asian markets as withdrawal of a controversial extradition bill in Hong Kong and on the back of news that the US and China had agreed to meet in early October for another round of trade negotiations, Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers, said.