Nifty ends flat, shrugs off strong global cues

Equity benchmarks closed volatile session on a flat note, with a positive bias but shrugged off strong global cues. The Nifty tried a lot to get back above the 6000 level but could not happen.

Realty, metal, healthcare, FMCG and auto companies' shares along with L&T, Bharti, Infosys and Reliance Industries supported the markets to end in green. However, financials along with ONGC, Reliance Communications, JSPL, TCS, BHEL and Wipro capped the gains to major extent.

The Sensex was plunged more than 200 points in morning trade due to selling in financials post the news that the banks' have exposure to microfinance institutions (MFIs at around Rs 7,000 crore, reports CNBC-TV18 quoting sources. Even the Nifty went near to 5900 level but managed to show smart recovery in second half of trade; ICICI Bank was cracked more than 5% in morning trade today which closed 3% lower; because there reports that the bank may have exposure to MFIs.

Even BSE Bankex was crashed over 3%, which ended 1.6% lower after recovery. SBI slipped 0.5%. PNB, IDFC and HDFC Bank declined over 1.2%. Axis Bank fell 3% despite the news that Enam Securities - that is Enam's Investment Advisory and Equity Capital Markets business will merge with an Axis Bank subsidiary - in an all-share transaction - valued at Rs 2064 crore.

But experts are still upbeat on Indian markets and consider it to be a momentary phase. Akash Prakash of Amansa Capital said that market is going through a normal corrective phase. According to him, the Nifty has support at 5,500-5,700 on the downside. 

On an optimistic note, Prakash is hoping to see the markets touch new highs in 2011. ''I hope to see gradual 20% move for markets in 2011,'' he reiterated.