The Sensex ended flat at 14,785, up 21 points, in volatile trade as investors worried about the direction of the market. The Sensex saw profit taking at higher levels, after trading between 14,955 and 14,685.
But the market action was in the midcaps and smallcaps, with the CNX midcap index and BSE smallcap index gaining 1.1 per cent and 1.5 per cent respectively. The breadth on the BSE was positive, with gainers edging out losers by 1683 to 965 and 71 stocks remained unchanged.
The market could be volatile ahead of the presentation of the Union Budget 2009 on July 6, 2009. Investors are also closely watching the progress of monsoon.
“Though the markets are expected to be choppy this week, the overall outlook is positive. Globally, the situation is improving and the Budget is expected to be market friendly and growth oriented,” said Prateek Agarwal, head of equities at Bharati AXA Investment Managers.
Consumer durable, realty, metal and infrastructure stocks gained in today’s trade. On the BSE, the realty index rose 2.9 per cent and the metal index gained 2.6 per cent. The BSE oil & gas index ended 2.4 per cent higher. In the realty space, Phoenix Mills, HDIL and Anant Raj Industries rose more than 5 per cent each.
JSPL, Sterlite Industries and SAIL were the major gainers in the metal sector. The stocks gained more than 4 per cent each.
Infrastructure stocks also rose today on budget expectations. GMR Infra was the biggest gainer in the space. On the BSE, the stock zoomed 13 per cent to end at Rs 155.
IT, auto and pharma stocks, however, showed some weakness today. The BSE IT index fell 2 per cent and the auto index slid 0.4 per cent.
In the 30-share Sensex pack, 15 stocks advanced while the remaining counters ended lower. Sterlite was the top gainer. The stock closed 5.6 per cent higher at Rs 646. DLF, RIL and ONGC were the other main gainers in the group, up more than 2.6 per cent each.
Tata Motors, however, was the biggest loser in the pack. The stock plunged 7.8 per cent to Rs 313 on poor FY09 results. The country's largest vehicle maker reported a consolidated net loss of Rs 2,505.25 crore for 2008-09.
Major Asian markets drifted lower on Monday and European stocks gained as investors awaited key data later this week for clues on whether hopes for a global economic recovery are justified.
Japanese stocks, up in early trading, fell on reports that the country's second-biggest bank and brokerage plan to sell new shares, potentially diluting their value. The Nikkei 225 index slid 93.92 points, or 1 percent, to 9,783.47, while Hong Kong's Hang Seng index declined 71.75 points, or 0.4 percent, to 18,528.51.