Sensex closes listless trade flat; inflation data eyed

The BSE Sensex and NSE Nifty closed listless trade on a flat note on Friday as the market is eagerly waiting for inflation data (that scheduled for July 16), which will decide the Reserve Bank of India's move on July 31 (a day of first quarter monetary policy review).

Analysts on average expect June inflation in the range of 7.5%-7.8% as against 7.55% in previous month and core inflation around 4.9%-5.5% versus 4.8% in May. Therefore they feel the RBI may not consider rate cut.

ICICI Securities said, "In a scenario where WPI inflation is expected to remain over 7.5% and core inflation likely to hover around 5%, it's fairly unlikely that the RBI will go for steep rate cuts in the forthcoming monetary policy reviews. This view is reinforced by the recent statements indicating that RBI continues to maintain its unflinching stand to curb inflation at the cost of 'short term' growth."

The BSE benchmark gained as much as 110 points in morning trade, but gains could not sustain in second half of trade as traders opted to book profits ahead of weekend and inflation data. The index declined 18.85 points to close at 17,213.70 and the NSE benchmark slipped 8 points to 5,227.25.

The Indian rupee performed quite better today, appreciating by 63 paise to 55.31 against the US dollar from 55.94 a dollar in previous session.

Infosys, country's No. 2 software services exporter tanked further, losing 1.65% after falling more than 8% in previous session due to disappointing results in Q1 and guidance for FY13. However, TCS gained as much as 4% after better than expected numbers in the June quarter, but the profit booking has restricted gains to 1% at close.

Top lender State Bank of India dropped 1.7% whereas its rival HDFC Bank rose 1.2% after the company met expectations for June quarter results.

Jindal Steel topped the selling list, declining more than 3%; Hindalco Industries, Tata Steel and Sterlite Industries were down 1-2%.

Private oil & gas producer Reliance Industries and engineering and construction major by sales Larsen & Toubro declined 0.35% each.

Cigarette major ITC moved up 0.75% and state-owned oil & gas producer ONGC was up 0.9%. Two-wheeler major Hero Motocorp rallied 1.4% and telecom operator Bharti Airtel gained 0.5%.

Realty stocks like DLF, Godrej Properties, HDIL, Indiabulls Real, Unitech and Prestige Estates were down 1-4%.

For the week, the BSE Sensex was down 1.75% and NSE Nifty declined 1.7%.

The broader markets too closed flat. In the second line shares, Sintex Industries gained 3% after better than expected operating profit margin in the quarter ended June 2012.

SPARC, Bajaj Corp, Tube Investment, Zydus Wellness and MTNL were up 4-7%. Shanthi Gears rose 5% as Tube Investment will buy more than 40% stake in the company.

SKS Microfinance plunged 7% as the company is likely to report a loss of Rs 30-50 crore or higher in the June quarter. GMR Infra and IVRCL lost 3.5%.

Mining companies led a bounce in European equities on Friday, having fallen in the previous session, as growth data from China proved no worse than feared but weak enough to keep alive hopes for more official stimulus for the economy. (With inputs from Reuters)

France's CAC, Germany's DAX and Britain's FTSE were up 0.4-0.7% at 15:30 hours IST. The Dow Jones futures gained 45 points.