No major fireworks on Dalal St; Nifty ends flat

It was a dull session for the markets as investors chose to remain cautious ahead of the upcoming F&O expiry and Q4 GDP data numbers on Thursday.

The Sensex shuts shop at 16438.58 up 21.74 points or 0.13% and the Nifty closed at 4990.10 up 4.45 points or 0.09%. The market breadth was positive. About 1425 shares advanced, 1255 shares declined, and 743 shares remain unchanged on the Bombay Stock Exchange.

IT and realty stocks hogged limelight in trade, while FMCG and consumer durables stocks closed in red on profit booking.

Top gainers on the Nifty were HCL Tech, Cairn India, Wipro, Maruti Suzuki and Coal India. ACC, BPCL, ITC, IDFC and Siemens ended in red.

Q4 GDP Forecast

India's annual economic growth probably held steady in the January-March quarter at 6.1% and the global economic slowdown, government policy paralysis and a record low currency suggest little chance of a pick up in the current quarter.

A poll of 31 economists produced a median forecast of 6.1%, unchanged from the growth of the October-December quarter. Forecasts ranged from 5.5% to 7.3%.

Results Impact

Steel Authority of India (SAIL) has reported a net profit at Rs 1577 crore for the March quarter, up 3%, year-on-year, despite a 35% increase in input cost. The company said its turnover for the quarter grew 13% to Rs 14,785 crore,YoY. The stock ended flat.

State run Power Grid Corporation of India declared Q4 net profit at Rs 1,032 crore versus Rs 751 crore, YoY. Its total income was higher at Rs 3,102 crore versus Rs 2,211 crore. The stock was charged with 1% gain.

Gujarat Mineral Development Corporation (GMDC) surged 4.13% to Rs 179, after the stock extending Monday's 5% rally triggered by the company reporting strong Q4 results.

Real estate developer HDIL rose 3.72% to Rs 66.85. HDIL will announce its year ended March 2012 results on 30 May 2012.

Infrastructure company Lanco Infratech gained 3.19% to Rs 12.95 ahead of its year ended March 2012 results today, 29 May 2012.

Morgan Stanley downgrades RComm

Morgan Stanley has downgraded its view on India's telecom sector to "in-line" from "attractive", citing increased regulatory risks tied to the spectrum auction, and "relatively weaker" 3G outlook.

The brokerage has cut its rating on Reliance Communications to "underweight" from "equalweight", and slashed its target price to Rs 51 from Rs 109, citing a weaker balance sheet and saying the company faced the highest regulatory risk.

Europe in Green

The FTSEurofirst 300 index, which has fallen 5.6% so far in May, opened 0.5% higher at 988.79 points led by a solid gain in Germany's DAX index.

Euro at 2-year low, Rupee nears 56 mark

The euro hovered near a two-year low on Tuesday with investors worrying about Spain's banking problems, the outcome of the Greek elections and the health of the global economy. The euro stood at $1.2555, near last week's two-year low of $1.2495. The Indian Rupee lost nearly 1% or close to 50 paise in trade today.

Black, Yellow Gold Shine

Brent oil rose to stay above $107 a barrel on Tuesday, backed by concerns over potential Middle East supply disruptions, although the modest gain reflects caution over a deepening euro zone debt crisis that is hurting the outlook for global fuel demand.

Gold edged up on Tuesday, aided by a slightly weaker dollar, but concerns about Spain's high borrowing costs and its struggling banking sector kept gains in check.