Sensex ends 43 pts down

Market with a responsive note in the following session as investors chose to tread a cautious path by Reserve Bank of India raised the inflation rate is expected to 5% for fiscal year 2010, even when the left key rates unchanged while discovering its quarterly monetary policy review this morning.

Projecting a GDP growth of 6% in fiscal policy, the central bank said that there is room for banks to lower interest rates. The central bank said it will maintain an accommodative financial position of the solid signs of recovery in the economy is observable. The central bank will be ready with a roadmap for turning expansionary quickly and effectively when.


The conduct of monetary policy will continue to condition and includes perceptions of inflation in the range from 4% to 4.5%. This will be in line with the medium-term target of 3% inflation in line with India's broader integration into the world economy, the RBI said.
The 30-share BSE index Sensex insightful, which plunged to 15,240.53 by mid morning, but mobilized to 15,463.46 finally final days 15,331.94 with a loss of 43.10 points or 0.28%. The comprehensive 50-stock nifty index of National Stock Exchange closed at 4564.10, netting a loss of 8.20 points for the day. The nifty touched a high of 4,599.90 and a low of 4529.15 today.
Although the global signals are positive, it was not a significant business starts for the market this morning as the Sensex had no more than a few minutes in positive territory, despite the opening modestly higher.
Realty shares have had a very good session as investors lapped them up on hopes of increased demand for housing after the finance minister's statement that the government would provide 1% interest rate subsidy on housing loans up to Rs 10 lakh a year. Automobile Change Tata Motors found particularly strong support. Select metal, power and PSU stocks rose higher.
Capital goods stocks showed a mixed trend. Information technology, oil, banking and retailing market stocks struggled for support today. Even as buying remained much equipment in the large cap space, more MidCap and Smallcap shares moved higher on strong buying inquiries.
Hindu Stan Unilever fell by about 7.25% to Rs 277 due to weak quarterly numbers from the company. Icici Bank lost 2.35%. Grasim Industries, State Bank of India, Infosys Technologies and Reliance Industries declined by 1.4% - 1.75%. HDFC Bank, Hero Honda, Larsen & Toubro and Tata Consultancy Services also closed on a weak note.
Tata Motors had a smooth ride in the positive territory. Stock market, which had rebounded sharply in late afternoon trading Monday, thanks to better than expected quarterly results, extended their gains and registered an increase of 10.5% today.
Reliance Infrastructure and DLF closed higher by 3.95% and 3.4% respectively. Reliance Communications, Maruti Suzuki, Tata Steel, Tata Power and ACC gained 2% - 3%. NTPC moved up by 1.35%.
Bharti Airtel, Wipro, Mahindra & Mahindra, Ster Lite Industries, Sun Pharmaceuticals, ITC and ONGC finished with modest gains while Hindalco, HDFC, Jaiprakash Associates and BHEL ended marginally higher.
Unitech shot up by over 10%. Ambuja Cements, Tata Communications, Siemens, Suzlon Energy, HCL Technologies and sail also closed with significant gains.
ABB, Idea Cellular, Jindal Steel, Cairn India, Gail India, Reliance Capital, Punjab National Bank and Nalco ended with sharp to moderate gains.
The market breadth was strong again, thanks to fairly heavy purchases in several MidCap and Smallcap counters. Out of 2,745 shares traded on the BSE, 1,709 shares advanced and 945 shares fell. 91 shares ended flat.
Stocks to watch this week
The volume of business was higher today. Turnover on the NSE at Rs 22,072.74 crore was higher by about Rs 2900 crore than what was recorded in the previous session.