END DAY (29 July 2011)

Sensex sheds 525 pts this week; US debt deal eyed

ndian equity market was volatile on Friday before closing on a flat note. After a continuous sharp cut for the last three consecutive sessions, the market consoildated today indicating that almost all negatives have been factored in atleast for the time being. Along with the US and Europe, Indian market too is eyeing the US debt plan.

The 30-share BSE Sensex closed almost flat at 18,197.20, falling just 12.32 points. The index had shed 661 points in previous three sessions on the back of more-than-expected hike of 50 basis points in key rates by RBI to tame inflation coupled with uncertainty over US debt deal.
European markets were down between 0.7% and 1.1%. Asian markets too closed down between 0.3% & 0.7% today. The US equity market had erased gains to close flat yesterday.

On the Indian front, ICICI Bank was among the top three gainers on Nifty post better-than-expected numbers. India's second largest lender reported a jump of 30% in profits of Rs 1,332 crore for the first quarter of FY12 due to less provisions. Provisions declined 43% in the April-June quarter compared to corresponding quarter of last fiscal year.

Bharti Airtel, ITC, TCS and Infosys gained between 0.7% % 1.5%. Axis Bank and PNB rallied over 2%.

Maruti Suzuki bounced back after production resumed at its Manesar Plant yesterday. The stock ended 1.75% higher.

However, Oil major ONGC too did not impress the street with its quarterly numbers -- the stock fell 2.9%. Heavyweight Reliance Industries lost over 1%; the stock plunged 6% since Tuesday.

Jindal Steel fell over 4% on disappointing Q1 results coupled with reports of bribing allegations.

Metal and mining companies saw selling pressure today. Sesa Goa was the major loser, falling over 5%. Sterlite Industries, SAIL and Tata Steel lost 1-2%.

Jaiprakash Associates fell 4%. Wipro, L&T, BHEL, SBI and DLF were down between 0.4% & 1.4%.

About 1163 shares advanced against 1757 shares declined on Bombay Stock Exchange.