Home Economy Indian shares witness fluctuations

Indian shares witness fluctuations


Mumbai : Indian shares witnessed choppy trading during the week ended Friday with key indices fluctuating both ways to finally end on a flat note, despite a strong rallies on two successive days.

Monday witnessed key indices losing 0.58 percent, as investors traded with caution despite showing strong interest ahead of the country's largest-ever share sale by leading private lender ICICI Bank and firming Asian markets.

After a choppy session, the benchmark sensitive index (Sensex) of the Bombay Stock Exchange (BSE) was down 82.57 points or 0.58 percent to close in the red at 14,080.14 Monday. Only seven of the Sensex components traded in the green.

The 50-issue broader National Stock Exchange index, Nifty, after a strong start ended at 4,147.10 or down 24.53 points or 0.58 percent.

The shares bounced back riding the buying of blue chip stocks, with the Sensex gaining 1.53 percent Tuesday, its strongest close in the past two weeks.

The surge was led by India's most valuable firm Reliance Industries and ICICI Bank, which opened its order books for the country's largest ever sale of shares.

The Sensex closed at 14,295.50, its strongest close in the last two weeks since its all-time high of 14,723.88 points Feb 9. Similarly the broader 50-issue National Stock Exchange (NSE) index, Nifty closed 1.62 percent higher at 4,214.30, since its all-time high on June 4 at 4,362.95.

On Wednesday, the shares continued to trade firm, buoyed by banking, auto and capital goods stocks with a key index gaining 0.81 percent after high trade to close at 14,411.95. The Nifty too rose 0.82 percent to a strong close of 4,248.65.

The shares managed to close in the green Thursday despite early losses, riding on firm trading in leading engineering and construction firm Larsen and Toubro, Bharat Heavy Electricals, Reliance Energy, and Housing Development Finance Corp, to take the key index up by 0.61 percent.

Friday saw the Sensex start the day above the 14,500-mark to touched 14,560 points during intra-day trading. But the gains were moderated in late trade dragged by blue-chip stocks like Reliance Industries and technology stocks to end a good week's rally.

The Sensex closed at 14,467.36 points, losing 0.22 percent.

"Information technology stocks were the major under-performers during the week, along with cement and some auto stocks. Though investors showed some interest in cement and auto stocks late in the week, IT shares continued to under perform," an analyst said.

"Given the valuation of IT shares being compressed, they may continue to under perform, before a recovery in the second half of the year."