Sensex ends flat, markets shrug off rate hike (Roundup)

MUMBAI - A benchmark index for Indian equities Tuesday closed flat as traders consolidated their portfolios after a two-day rally. Markets largely shrugged off the Reserve Bank of India’s decision to hike short-term interest rates, which led to selling in realty stocks.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 20,407.18 points, closed at 20,345.69 points, down 9.94 points or 0.05 percent from its previous close at 20,355.63 points.

At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty ended at 6,119 points, almost unchanged from its previous close.

The central bank hiked both its short-term borrowing and lending rates by 25 basis points each in what could trigger higher interest rates on auto, housing and corporate loans.

The repurchase rate stands revised to 6.25 percent from 6 percent, while the reverse repurchase rate has been hiked to 5.25 percent from 5 percent in the sixth such interest rate tweak this year.

Broader markets closed mixed. The BSE midcap index ended 0.45 percent higher, while the BSE smallcap index ended on a subdued note, moving up 0.09 percent.

Consumer durables, capital goods and IT stocks led the gainers pack, while realty and auto company scrips, both sensitive to the rate hike, were among the major losers. Energy companies too closed lower, led by heavyweight RIL.

Top Sensex gainers were ACC, up 4.2 percent at Rs.1,056.95; L&T, up 2.53 percent at Rs.2,133.25; Wipro, up 2.49 percent at Rs.434, and Tata Steel, up 0.94 percent at Rs.598.20.

Among the losers were DLF, down 3.28 percent at Rs.349.10; Cipla, down 1.78 percent at Rs.350.75; RIL, down 1.72 percent at Rs.1,074.35, and Bharti Airtel, down 1.53 percent at Rs.329.05.

The market breadth was negative, with 1,386 stocks advancing, 1,596 declining and 119 remaining unchanged.

Other Asian markets too closed dull after Monday’s rally, awaiting the outcome of the US mid-term elections and the Federal Reserve’s meeting on easing of interest rates.

The Shanghai Composite index closed at 3,045.43 points, down 0.28 percent.

Hong Kong’s Hang Seng ended flat at 23,671.42 points, while the Japanese Nikkei closed almost 0.06 percent at 9,159.98 points.

European markets were, however, in the green helped by a rise in the Euro zone purchasing managers’ index.

Around mid-day, Britain’s FTSE 100 was trading 0.89 percent higher at 5,745.04 points.

The German DAX was up 0.44 percent at 6,633.9 points, while the French CAC 40 was 0.27 percent higher at 3,851.66 points.