Nifty ends rangebound session on quiet note; ADAG dips

Indian equity benchmarks remained in a consolidation mode for third consecutive session on Wednesday. The benchmark Nifty has been trading in a narrow range of 5615-5650 since the beginning of week. But more importantly it has not broken the 5600 mark because foreign institutional investors (FIIs) were quite supportive.

The 30-share BSE Sensex fell 17 points, to close at 18,727 and the 50-share NSE Nifty slipped 6.5 points, to end at 5,625.

Rajen Shah, CIO of Angel Broking said he would be cautious to negative on the market.

"We are still up about 8-9% from the bottom which we made about couple of weeks back. The only reason which has triggered this rally has been the huge pumping in of Rs 7000-7500 crore by FIIs. The global scenario still looks very uncertain. I think once the quarter one numbers starts trickling in and once people start looking at the margin pressure and all that - the market is certainly going to slip. So I would be cautious to negative on the market."

FIIs have net bought Rs 9,771 crore worth of equities since June 23 till yesterday (including Tuesday's provisional data).

Shah expects lackluster market at least for the next three months. "As far as volumes are concerned I think over the past one year the market has given absolutely nothing. When an FD is fetching you 10% without any tensions - why get into market. So we will see lackluster volumes and lackluster market at least for the next three months."