Markets end flat; metals lose shine

Commentary

oi-Sunil

By Sunil Fernandes

Updated: Friday, July 13, 2012, 15:36 [IST]

Markets closed in the red for the third day in a row as profit booking in the last hour of trade saw equities lose ground. The Sensex ended the day lower by 18 points, while the Nifty closed the day lower by 8 points.

The metal pack continued to lose heavy ground with Sterlite, Hindalco and Sesa Goa all closing firmly in the red. Infosys continued its slide for a second day in a row, dropping more than one per cent on dismal revenue guidance. Among the gainers from the Sensex included Hero Motor Corp, TCS and Cipla. In fact, TCS surged smartly following a good set of numbers posted by the company.

Shares gained across Asia with the Hong Kong's Hang Sang, Japanese Nikkei and Singapore's Strait Times all closing the day higher. In Europe too shares were trading up with the UK's FTSE, the German DAX and the French CAC all up between 0.50 and 1%.

Domestically, markets are likely to take cues from the earnings season which has been mixed so far. Analysts will also keenly watch the inflation data which is due on Monday. A higher reading would ensure that the RBI does not act on further monetary easing when it meets on July 31, 2012 to review its monetary policy. This could certainly be bad news for the markets.

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