Sensex stays flat after worst fall in four months

Mumbai: After its biggest drop in over four months last week, market today remained sandwiched in a tight band by ending with measly gains amid mixed global conditions.

There was an element of choppiness too ahead of the June derivative contract expiry coming up on Thursday.

Investors still are a worried lot as they tried to digest the full impact of the Brexit fallout.

However, the broader markets came up a little better as they outperformed Sensex, with the small-cap index rising 1.52 percent and the mid-cap 0.80 percent.

Sugar companies found themselves in a sweet spot as stocks led by Dalmia Bharat Sugar, Dwarikesh Sugar, Sakthi Sugars and Bajaj Hindusthan soared by up to 20 percent in an otherwise flat market.

The 30-share Sensex closed at 26,402.96, a marginal rise of 5.25 points, or 0.02 percent.

The gauge had plunged nearly 605 points on Friday, its biggest single-day fall since February 11, as a shock victory for 'Leave' camp in the UK referendum sent shivers down the spine of global markets.

The NSE Nifty ended higher 6.10 points, or 0.08 percent, at 8,094.70 after shuttling between 8,039.35 and 8,120.65.

In the Sensex pack, Dr Reddy's was on top of the gainers' list by climbing 3.04 percent, followed by SBI (2.77 percent).

"Domestic sentiment was given a bit of a boost after global credit rating agency Moody's Investors Service reportedly said in a note that the Indian government's recent decision to relax FDI rules is credit positive," said Shreyash Devalkar, Fund Manager - Equities, BNP Paribas Mutual Fund.

Meanwhile, foreign portfolio investors sold shares worth net Rs 629.14 crore last Friday, provisional data showed.

In the 30-share Sensex basket, 14 rose while 14 declined and 2 remained unchanged.

Other major gainers were Sun Pharma (2.67 percent), Cipla (2.62 percent), Larsen (2.36 percent), ITC Ltd (1.60 percent) and Adani ports (1.11 percent).

Shares of software services exporters such as TCS, Infosys and Wipro remained under selling pressure and dropped by up to 2.93 percent due to their sizeable exposure to Europe.

Healthcare rose 2.01 percent, capital goods 1.62 percent, realty 1.29 percent, FMCG 1.25 percent, oil & gas 1.07 percent and consumer durables 1.03 percent.

Overseas, it was a mixed picture for Asia. Japan's Nikkei ended up 2.39 percent and Shanghai Composite gained 1.45 percent while Hang Seng shed 0.16 percent and Singapore fell 0.20 percent.

European stock markets mostly retreated as a key British policymaker tried to douse the fire after last week's shock Brexit vote. UK's FTSE and France's CAC went up by up to 1.46 percent while Germany's DAX fell 1.32 percent. 

"Market has steadied in a narrow range. Volatility is foreseen in the market with the F&O expiry week. Developments in the euro zone will be the decisive factor for future market developments," said Gaurang Shah, Vice-President, Geojit BNP Paribas.

"A favorable monsoon, corporate earnings improvement, the possibility of the US Fed not raising key rates in the near future will be positive triggers, going ahead."

The market breadth turned positive as 1,820 stocks ended higher, 788 declined while 179 ruled unchanged.

The total turnover fell to Rs 3,279.90 crore, from Rs 3,968.19 crore last Friday.