Markets end on a flat note
Rangebound movement continued right through the closing stages of the day, leading the Indian equity market to close on a flat note. While Sensex edged marginally higher by around 24 points (up 0.14%), gains on the Nifty came in at a mere 6 points. BSE Mid Cap index emerged as one of the best performers, edging higher by 0.4% while the Small Cap index also ended flat. Two stocks edged higher for every one that closed the day in the red on the Sensex today.
Most Asian markets closed in the red today whereas Europe is trading mixed currently. The rupee was trading at Rs 57 to the dollar at the time of writing.
Today's lacklustre outing was perhaps a result of no significant news, both on the domestic as well as international front. Sensex moved within a narrow range right from the beginning and although it did go into the negative territory, buying momentum took it back into the positive zone right at the fag end of the day. All eyes are now set on the European Union summit scheduled for June 28-29. However, it is unlikely that any radical step to fight the crisis in the region is likely to be outlined.
Cement firms closed mixed today with Ambuja Cement and ACC amongst the top gainers. According to a leading business daily, Aditya Birla Group is believed to have emerged as the frontrunner for acquiring a stake worth Rs US$ 1 bn in the cement business of Jai Prakash Associates (JPA). It should be noted that JPA intends to sell 26% stake in its cement business, the third largest in the country with a production of close to 16 m tonnes in FY11. The company has already spun off the cement business into a separate company in order to facilitate the sale. Apart from a multinational company, there emerged no other serious bidder for the sale.
As per reports, GAIL, India's largest gas transmission company would invest Rs 110 bn towards gas distribution in the northern state of Uttar Pradesh. Out of the total, Rs 15 bn would be allotted for the 200 km Jagdishpur Haldia pipeline. The company would get the support of the state government for relaxation of taxes and duties as well as other any other help that's required. The stock closed higher by more than 3% on the bourses today.
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