The Nifty and the Sensex closed marginally in the red on a day of see-saw movement.

The Nifty closed at 5,651, down seven points, while the Sensex closed at 18,736, down 57 points.

All the broader and sectoral indices closed flat.

“With F&O expiry due next week, it promises to be volatile. However, going forward several doubts will be raised in the minds of investors as to how the Government will go ahead with any reform process, whether the disinvestment process will go through smoothly and the reaction of the FIIs who have been primarily driving the rally in the past 7-8 months,'' said K. Subramanyam, AVP - Institutional Research, Asit C. Mehta.

Volatility was down six per cent and the volatility index India Vix closed at 15.54.

On the BSE, buying was seen in the stocks of power, metal and capital goods sectors with each up by over 0.1 per cent. On the other hand, consumer durables fell the most by 2.06 per cent followed by realty 1.31 per cent and IT 0.82 per cent.

Asian shares hovered near their lowest in nearly three months and the euro cameunder pressure as investors were worried over a possible debt default by Cyprus and deteriorating economic activity in the Euro zone.

Japan’s Nikkei 225 was down 297.16 points or 2.35 per cent at 12,338.53 and Hong Kong’s Hang Seng was down 102.09 points or 0.46 per cent at 22,123.79.

European stocks were down as Cypriot lawmakers have begun a debate to unlock the bailout funds and avert a financial collapse.

Global sentiment was further hit by dismal Euro zone data, which offset upbeat US data on housing, future economic activity and business conditions in the mid-Atlantic region and improving Chinese factory output.

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