Sensex ends flat in truncated week after see-saw trade

MUMBAI: The shortened trading week saw the key indices ending flat after a roller-coaster ride on the back of a host of domestic developments related to inflation, factory output and corporate earnings.
The market succumbed to heavy profit-booking on the first two trading sessions on higher inflation (both WPI and CPI) as also contraction in factory output which renewed macro economic concerns.
However, healthy Q4 corporate earnings by some IT companies and optimism over a stable Government after the ongoing elections triggered heavy buying towards the tail-end.
The market, which had just three trading sessions, was closed on April 14 for Ambedkar Jayanti and on April 18 for Good Friday.
India’s Index of Industrial Production (IIP) contracted by 1.9 per cent in February 2014 from 0.8 per cent growth in previous month.
The inflation, based on Wholesale Price Index (WPI), rose to 5.7 per cent in March from 4.68 per cent in February, while March inflation, based on Consumer Price Index (CPI) shot up to a three-month high of 8.31 per cent from 8.03 per cent in February.
The rise in inflation diminished hopes of rate cut by the Reserve Bank in its next monetary policy meet and adversely affected the market initially.
Brokers said a private weather forecast of below normal monsoon this year too had a negative impact on the market.
However, the mood turned positive after software majors Infosys and HCL Technologies posted good Q4 results.
The markets also took note of global rating agency Standard & Poor’s report, which stated that it may upgrade India’s outlook if the next Government addresses some of the country’s fiscal and economic challenges on a priority basis.
The Sensex resumed higher at 22,698.09 and hovered in a range of 22,737.31 and 22,247.39 before closing at 22,628.84, a mere loss of 0.12 points over the last weekend level.    —PTI