Markets end flat amid choppy trade, Nifty back above 2700

24 February 2009

The benchmark indices closed flat amid choppy trade ahead of F&O expiry on Thursday. Both indices had started on a weak note following weak global cues. In the second half though, markets showed smart recovery but remained volatile with marginal downward bias.

HDFC, SAIL, Bharti Airtel, SBI, TCS, HDFC Bank, Tata Steel, Wipro and Sterlite Industries were draggers while ONGC, NTPC, DLF, BHEL, Reliance Communication, Ranbaxy, Grasim, Maruti, ICICI Bank, Tata Power, Ambuja Cements and L&T were being supportive to these indices.

The 30-share BSE Sensex has touched a low of 8,619.22, before closing the day at 8,822.06, down 0.24% or 21.15 points. The 50-share NSE Nifty was down 0.09% or 2.55 points, to 2,733.90.

Nifty futures rollover stood at 44%, which added about 1.15 crore shares in open interest, OI. Nifty February futures ended with 6 points discount and March Futures with 24 points discount. Marketwide rollover stood at 38% and stocks futures have seen a rollover of 38%.

S&P has revised outlook on India to negative from stable and affirmed BBB- rating on India, which haven't impacted markets much. They expect FY09 fiscal deficit at 11.4% from 5.7% and said deficit to remain high at 11.1% in FY10. Fiscal deficit could widen if next government announces another stimulus package, S&P said.

In order to help industry cope under the pressure of the economic slowdown, the Finance Minister, Pranab Mukherjee announced several relief measures in terms of excise duty cuts and reduction in service tax. Finance Minister has cut excise duty on bulk cement to 8% or Rs 230/tonne; cut service tax to 10%; cut excise duty by additional 2%. The excise duty of 8% will be applicable beyond March 31. He also extended custom duty on naptha beyond March 31. A 4% excise duty cut across the board will also be extended beyond March 31.