The BSE Sensex saw a volatile session on Monday,
wiping out its over 350-points rise of early trade to end a meagre 9.71 points higher, as a pick-up in August wholesale inflation dashed hopes of the central bank cutting rates later this week.
After climbing to 20,086.43 at the outset, the BSE benchmark was hit hard by profit-booking as costlier onion and other vegetables pushed up
inflation for the third month in a row to 6.1 per cent in August.
Traders said besides dashed rate cut hopes, concerns that the Reserve Bank of India (RBI) may not wind down its liquidity-tightening measures also was a factor in investors selling off positions.
The Sensex finally closed at 19,742.47, up just 9.71 points, or 0.05 per cent compared to Friday's closing value.
The broad-based National Stock Exchange index Nifty fell by 10.05 points, or 0.17 per cent to 5,840.55. The index moved between 5,957.25 and 5,798.15.
Also, SX40 index, the flagship index of MCX-SX, closed at 11,715.45, up 9.27 points or 0.08 per cent.
Brokers said selling pressure remained strong enough and domestic markets ignored a firming trend in the Asian region as well as a higher opening in Europe.
While banking, auto, FMCG and public sector undertaking stocks clocked gains, drop in Reliance Industries, Infosys and TCS dragged down the 30-share index. In banking, ICICI and HDFC notched up good gains. ITC, Bharti Airtel and ONGC also rose.
In major movers, pharma major Ranbaxy, a Nifty stock,
dropped by 30.27 per cent to Rs 318.85 as US Food and Drug Administration issued an
import alert on drugs produced by the company at its Mohali plant in Punjab, for violation of current good manufacturing practices.
Global stocks rose on reports that former US Treasury Secretary Lawrence Summers, who was said to be in the race to replace Federal Reserve Chairman Ben Bernanke in January next year, has pulled out of the race for the top job.
With inputs from PTI
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