Mumbai: It was a boring Monday for the Indian markets as the Sensex closed marginally lower amid volatility. Traders preferred to book some profits after a stellar performance of the Sensex in the last week by adding 1151 points. The Nifty was down 11 points, to close at 5,039.15 and the Sensex declined 41.5 points, to end at 16,805.33.
India and its global peers are keenly watching forthcoming events in the eurozone for easing debt crisis. Events included today’s meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel; ECB & BoE meeting on Thursday and the EU Summit on Friday.
Russell Napier of CLSA says, all eyes are on the EU Summit on December 9 and a decision on allowing the European Commission to determine the fiscal policy for all.
European markets like France's CAC, Germany's DAX and Britain's FTSE rose 0.5-1 per cent amid choppy trade. The Dow Jones futures gained 123 points and Nasdaq futures went up 22.5 points.
The Indian rupee, which appreciated sharply last week, fell more than 2 per cent at 52.25 to the dollar.
Soumyo Dutta, managing director and head-FXLM trading and risk treasury, Citibank says that a possibility of rupee going back to the Rs 52.70 per dollar levels cannot be ruled out if sentiment reverses and despair grows in the global market.
Shares of private lenders were under pressure; ICICI Bank, HDFC Bank and HDFC fell around 0.8 per cent.
Index heavyweights Reliance Industries and ITC were down 0.4 per cent and 1.1 per cent, respectively. Metal stocks like Sterlite, Tata Steel and Jindal Steel dropped 0.8-1.7 per cent.
However, the buying in SBI, BHEL and NTPC, which gained 1-2 per cent, limited the downside in the afternoon trade.
Major largecaps like TCS, L&T, Infosys and ONGC closed marginally higher.
JP Associates shot up 2.5 per cent led by short covering.
The broader indices too were flat and the market breadth was neutral.
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