Markets flat as investors cautious on results eve
Benchmark indices surrendered early gains to end little change on Monday as wary investors shied away from making fresh bets ahead of Karnataka poll results.
Lacklustre macroeconomic data added to the cautious mood, brokers said.
Karnataka assembly election results will be declared on Tuesday, with most exit polls predicting a tight race between the ruling Congress and the BJP. On the macro front, wholesale inflation rose to a four-month high of 3.18 per cent in April, industrial output growth fell to a five-month low of 4.4 per cent in March.
The BSE Sensex, after a better start at 35,555.83, advanced to hit a high of 35,642.72 amid positive cues from other Asian bourses. However, emergence of selling at every rise wiped off initial gains and the index finally settled 20.92 points, or 0.06 per cent higher at 35,556.71.
The broader 50-issue NSE Nifty edged up just 0.10 points to close at 10,806.60, after shuttling between 10,834.85 and 10,774.75. Meanwhile, domestic institutional investors (DIIs) bought shares worth a net ~11.63 billion, while foreign portfolio investors (FPIs) sold equities to the tune of Rs 3.25 billion on Friday, as per provisional data. “Market traded range bound...ahead of tomorrow’s (Tuesday’s) Karnataka state election verdict and CPI inflation data later in the day.
"WPI inflation accelerated to 3.18 per cent in April due to surge in fuel and food prices which may have a negative impact on CPI inflation... Consequently, rupee and bond yield will continue to witness volatility," said Vinod Nair, Head of Research, Geojit Financial Services.
Shares of state-run oil marketing companies rose after the PSUs announced a hike in fuel prices. Petrol price was hiked by ~0.17 per litre and diesel by ~0.21 as public sector oil marketing companies passed on the spike witnessed in international crude oil prices on consumers.
BPCL moved up 0.90 per cent, HPCL 0.74 per cent and OIL 0.49 per cent. However, Indian Oil Corporation fell 0.38 per cent.