The Bombay Stock Exchange benchmark Sensex today closed flat with a gain of just 22 points in a volatile trade, as three blasts in the country’s financial hub yesterday made investors nervous, and overall inflation rose below the market expectations.
The Sensex swung in a 350-range of 18,803.05-18,449.23 before ending with moderate gains of 22.18 points at 18,618.20.
After a lower start following the reports of triple bomb blast in Mumbai last evening, the 30-share index surged as the Home Minister, Mr P. Chidambaram, said terrorist attacks’ aim was not to unnerve the business centres, but to hit at congested and populated areas.
Besides, overall inflation — measured in whole price inflation index — climbed 9.44 per cent in June from 9.06 per cent in May, much below market expectations and helped the market to wipe-off the day’s earlier losses.
Yet, the stocks took a plunge at the fag end on weak Asian trend and lower opening in Europe, erasing most of the gains.
Similarly, the broad-based National Stock Exchange index Nifty ended 14.35 points higher at 5,599.80 after moving in 5,653.95 and 5,541.70 points range.
Banking stocks advanced on hopes that a slower rise in a monthly inflation may reduce the prospects of a further hike in interest rates. State Bank of India jumped 1.39 per cent, ICICI Bank 1.4 per cent, HDFC 1.01 per cent and HDFC Bank 0.55 per cent.
Banking index rose 1.04 per cent to 12,879.34.