Mumbai: Heightened fears of growth slowdown amid policy uncertainties overshadowed the optimism over GAAR deferment with the benchmark S&P CNX Nifty ending almost flat at the National Stock Exchange (NSE) on Monday.
The 50-share Nifty swung widely between a high of 5,295.80 and a low of 5,243.15 before settling at 5,253.75, a loss of 4.75 points, or 0.09 percent, over the last close.
The bourses got off to a buoyant start after last Friday's sharp fall, lifted by optimism over suggestion to defer GAAR, or rules to prevent tax evasion, alongside other tax-related issues supported by bullish overseas sentiment. Strong buying was seen in frontline bluechips, banking, auto and metals stocks.
The expert committee on General Anti-Avoidance Rules (GAAR) has recommended postponement of the controversial tax provision by three years and abolition of capital gains tax on transfer of securities.
Moreover, the Supreme Court decision to lift ban on iron ore mining operations in Karnataka by companies which had not flouted lease conditions further improved investor mood.
However, market suddenly turned volatile and gave away initial gains as investors resorted to profit-taking. It remained in a tight range throughout the session before ending with modest losses.
There are growing concerns among investors over macroeconomic woes like fiscal deficit, traders said.
Also, uncertainty over cancellation of coal block allocations is hurting sentiments, they added.
On the global side, Asian markets rose on hopes of coordinated stimulus measures from world Central banks.
SAIL, Tata Power, Jindal Steel, IDFC, Ambuja Cement, Gail, Tata Motors, Siemens, Axis Bank and Reliance Infra were the top percentage-wise losers from the Nifty pack.
Gainers included Ranbaxy, Coal India, Bajaj Auto, HCL Tech, Maruti, Hero Moto, BPCL, Cipla, Power Grid and BHEL.
The turnover in cash segment dropped sharply to Rs 7,821.01 crore from Rs 10,907.47 crore last Friday. Overall, 4,699.83 lakh shares changed hands in 45,23,459 trades. Total market capitalisation stood at Rs 59,47,196 crore.