Stock Markets Remain Flat, IT Stocks take a hit

The BSE Sensex closed at 28,372 with a gain of almost 19 points. The BSE Sensex opened at 28,345 touched an intra-day high of 28,416 and low of 28,259.

The NSE Nifty closed with a gain of 11 points at 8,727. The NSE Nifty opened at 8,711 hitting a high of 8,740 and low of 8,689.

Below par macroeconomic data and weak trend in Asian markets have been cited as the main reasons behind this sluggish downturn in the Indian markets over the last couple of days.

As per the financial brokers, the market mood took a plunge after a dismal IIP data, which was released after trading hours on Monday.

The industrial output decreased by 2.4 per cent in July, registering the worst performance in eight months mainly due to declining output in manufacturing and capital goods sectors. Retail inflation stooped to a five-month low of 5.05 per cent in August.

The brokers also said that weak market trend in Asian bourses, in line with overnight losses at the US market following fall in global crude oil prices, also dampened the traders sentiment.

On Monday, both the key Indian indices were dragged lower by increased possibility of a US rate hike, coupled with profit-booking and outflow of foreign funds.

The barometer index had plunged by 443.71 points or 1.54 per cent, while the NSE Nifty dipped by 151.10 points or 1.70 per cent.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the CNX Nifty witnessed some recovery due to short covering.

"IT stocks faced resistance at higher levels due to profit booking, while banking, auto and pharma stocks held early gains due to buying support at lower levels. Oil-gas stocks traded with mixed sentiments," Desai said.

As per equity analysts "Aviation stocks traded with mixed sentiments on profit booking, and power sector stocks witnessed buying support from lower levels. FMCG stocks traded with mixed sentiments on short covering at lower levels." 
The Indian equity markets were closed on Tuesday on account of Eid-ul-Zuha.