Markets end flat; FMCG, pharma lead

Mumbai: Markets rebounded from their day's low after hitting record highs on Monday. While FMCG and pharma stock lifted the markets, while heavyweights like ONGC, L&T, Tata Motors, ICICI Bank and RIL pulled down.

Sensex closed up 6 points at 27,875 and Nifty added 7 points to the trade at 8,344. While broader markets also closed flat with Mid and smallcap indices close 0.1 per cent up.

Brokers said cautious investors booked profits across counters as their hope of a rate cut has waned, pulling down the indices from their record high levels.

However, they say that the investor sentiment was upbeat in the morning on hopes that the government will accelerate economic reforms process after expansion of the Union Cabinet, lifting the Sensex and Nifty to new highs.

FMCG player ITC was up 4.27 per cent, the biggest gainer, followed by Sun Pharma 2.09 per cent, Tata Power 2.03 per cent, Dr Reddy's Lab 1.34 per cent, Coal India 1.32 per cent, HUL 1.28 per cent, HDFC 1.17 per cent, NTPC 1.14 per cent, Wipro 1.05 per cent and Hero Moto 1.02 per cent.

However, ONGC fell by 3.59 per cent, Hindalco 2.37 per cent, Tata Motors 2.26 per cent, L&T 1.98 per cent, Axis Bank 1.83 per cent, Cipla 1.16 per cent, RIL 1.16 per cent and ICICI Bank 1.10 per cent.

Second half subdued
Nifty opened better and encountered selling pressure at higher levels but recovered from lower level to close in the green. Short term trend continues to remain positive and stop loss may be continued at 8275 (on close basis). Nifty spot is expected to encounter resistance at 8380, 8415 and find support at 8305, 8270 for Tuesday. As Nifty is closing in a tight range for the last couple of day, a decisive and directional move can be expected in a day or two. While global cues and funds flow are expected to guide the market based on the present market. It may be expected that the market can be profit booking mode at higher levels and remain subdued towards close.
– Dr B Amaranatha Sastry