No follow-up rally after RBI policy; Sensex, Nifty end flat

Moneycontrol Bureau

Key equity benchmarks continued to trade within a tight range, ending Wednesday's trade marginally in the green after Reliance Industries recovered from a four-session losing streak, while ICICI Bank rose a day ahead of its quarterly earnings results.

While the market was somewhat under pressure on investors clearing their positions before the monthly expiry in the derivatives segment, a better global trend supported the market. Sentiment also remained weak after the RBI disappointed investors by staying cautious on future monetary easing.

The BSE Sensex gained 0.07 percent, while the 50-share Nifty rose 0.1 percent.

"Sensex gained marginally by 14 points to close at above 20,000. Markets were range bound and action was stock specific ahead of January F&O expiry. PSU banks witnessed sharp declines after lower than expected quarterly result and lack of continuity in the future direction of RBI interest rate
policy," said Shubham Agarwal, Associate VP & Sr Technical Equities Analyst, Motilal Oswal Securities Ltd.

Overseas investors were keen in the regional stocks as rupee strengthened over three-month high at Rs 53.36 on the back of increased dollar inflow and upcoming disinvestment in public sector companies.

The market was supported on firming Asian trend and higher opening in Europe following a powerful performance on Wall Street, where the Dow closed near its record high.

Reliance Industries, a market trend-setter and index heavy advanced 1.87 per cent to Rs 899.05, ended a four-day losing streak.

Private lender ICICI Bank shot up by 1.11 per cent to Rs 1,214.25 ahead of quarterly earning results and Reserve Bank of India cutting key interest rate cut.

(With inputs from agencies)