The domestic market finally managed to close flat after a jerky session, the interest of the foreign funds helped the market recede from the down of the day. The indices that began in red seemed to be closing in red but it was the last half an hour rally that led to the double digit gain for the BSE Sensex but the Nifty could not managed to register gain today.

Metal and the Bankex were the two sectors that maintained there gains from the early morning while the Realty and the Consumer Durables were the two that continuously pulled the indices down. It was a dismal day for the Mid Cap and the Small Cap that closed on the lower side after two consecutive rallies.

Previously, the Wall Street snapped its four day rally and ended in the negative zone on Monday as financial stocks fell after Deutsche Bank cut earnings forecast for 16 large banks including JP Morgan Chase. Profit booking was seen as investors sold stocks after last week’s rally, which also weighed down on the sentiment.   The Dow Jones industrial average fell 81.80 points, or 0.91%, to 8,952.89. The Standard & Poor’s 500 Index down by 4.35 points, or 0.47%, to 927.45 and the Nasdaq Composite Index closed lower by 4.18 points, or 0.26%, to 1,628.03.

The 30 share BSE Sensex opened at 10,258.38 touched a high of 10,392.12 with a low of 10,150.68 before finally closing at 10,335.93 up by 60.33 points or 0.59%.There were 17 advances against 13 declines on the index.

The over all market breadth weakened to the last with merely 47.74% advances against 48.77% declines. The BSE Mid cap closed lower by 0.19% and the Small cap was down by 0.23%.

The top gaining sectors of the BSE were Metal up by 2.02%, Bankex up by 1.62%, Auto up by 1.51%, fast Moving Consumer Goods (FMCG) up by 0.78% and Health Care (HC) up by 0.48%.

The sectors that dipped today include, Realty down by 3.98%, Consumer Durables (CD) down by 3.34%, Technology (TECk) down by 1.47%, Power down by 0.96% and Public sector Unit (PSU) was down by 0.62%.The top gainers of the BSE were Grasim Industries up by 8.37%, ACC up by 7.67%, Jaiprakash Associates up by 7.34%, Satyam Computers up by 7.31%, and M&M was up by 7.23%.

There was a report in the leading News paper that Satyam Computers was considering merger with Tech Mahindra that news kept the stock buzzing through out the day.

Though Satyam Computer Services has clarified to the news item titled - Tech Mahindra offers to merge with Satyam – that appeared in a financial daily denying the report stating that there was no truth in the news item.

The sector specific top gainers were Satyam Computers from TECk up by 7.31%, Peninsula Land from Realty up by 2.57%, Sail from PSU up by 5.35%, Siemens from Power up by 2.93%, BPCL from Oil & Gas up by 4.05%, Hindustan Zinc from Metal up by 9.25%, Dr Reddy’s from HC up by 3.46%, United spirit from FMCG up by 2.92%, Gammon India from Capital Goods (CG) up by 5.76%, Rajesh Export from CD up by 1.15%, HDFC Bank from Bankex up by 5.53% and M&M from Auto was up by 7.23%.

The top losers of the Sensex were RCom down by 5.65%, DLF down by 5.41%, Bharti Airtel down by 4.17%, Tata Power down by 3.07% and Reliance Infra was down by 2.79%.

The top losers along the sectors were R Com from TECk down by 5.65%, Anant Raj Industries from Realty down by 8.52%, Dena bank from PSU down by 5.83%, GVK Power from Power down by 3.13%, Cairn India from Oil & Gas down by 1.73%, Jai Crp from Metal down by 3.31%, Moser Baer from IT down by 3.95%, Wockhardt from HC down by 3.51%, Videocon Industries from CD down by 5.03%, IndusInd bank from Bankex down by 4.90% and Cummins Industries from Auto was down by 3.03%.

The top turn over gainers of the Sensex were Reliance Industries with trade worth Rs 274.89 crore, ICICI bank Rs 177.43 crore, Satyam Computers Rs 165.13 crore, SBI Rs 141.63 crore and Reliance Infra with trade worth Rs 130.17 crore.

The government intention to join the retail fuel prices with the international price bought cheers on the public sector oil marketing companies. BPCL gained 4.05%, HPCL was up by 1.59% and Indian Oil closed higher by 3.08%.

The move will essentially mean that within certain limits fuel prices will be able to freely fluctuate with crude prices. The information was given by deputy chairman of the Planning Commission MS Ahluwalia.

One of the immediate impacts of the move will be that retail fuel prices will come down again since the current administered prices are higher than what will be implied by present crude prices. Crude oil has softened around 70% to around $40 per barrel from its peak of around $146 per barrel.

India imports more than 75% of its crude oil needs and the energy hungry country ends up spending a huge amount of money in subsidies linked to petro products as the government attempts to shield the public oil marketing companies from high fuel prices. By joining fuel prices to international prices, government can save itself from such subsidies and there will be no better time to do this than current when crude is below $50 per barrel.

The broader index S&P CNX Nifty opened at 3,121.50 touched a high of 3,141.80 with a low of 3,056.10 before finally closing at 3,112.80down by 8.65% or 0.28%.The index witnessed 26 advances against 24 declines.

The top gainers of the Index were Ambuja cements up by 8.99%, Grasim up by 8.10%, M&M up by 7.44%, ACC up by 7.07% and Satyam Computers  closed higher of 7.06%.

The top losers of the index were DLF down by 5.90%, RCom down by 5.61%, Bharti Airtel down by 4.18%, Unitech down by 3.47% and ABB was down by 3.44%.

The major Asian market closed mixed after a choppy session, Nikkei 225 closed at 9,080.84 up by 37.72 points or 0.42%, Shanghai Composite moved up by 56.42 points or 3.00% to 1,937.14.

Whereas, Hang Seng closed lower by 53.80 points or 0.35% to 15,509.51 and the Straits Times closed at 1,913.66 down by 11.21 points or 0.58%.

The European market have made a good opening and the major indices are trading in green in the early hours of trade, FTSE 100 is up by 38.31  points or 0.84% to 4,617.95, CAC 40  is trading at 3,399.82  up by 39.90  points or 1.19% and the DAX 30 is  trading at 5,050.74 up by 66.75  points or 1.34%.