 "Is correction over? Sensex gives up gains, ends flat")
The Sensex ended flat as active participants refrained from long positions in the absence of fresh triggers, with HDFC gaining after cutting its prime lending rate, while NTPC slipped ahead of a share sale.
According to Sanjay Dutt of Quantum Securities the market correction is over but liquidity is still very sparse in the system and the downside is limited after the recent correction. Dutt told _CNBCTV18 t_hat structural hurdles needed to be addressed to improve investor-sentiment and expects PSU banks to correct by 10-15 percent from current levels.
“I think the indexes will not move up in a hurry and we will continue to meet resistance and may in fact actually fall another one percent from the current levels because both the structural, fundamental as well as the short-term liquidity outlook looks pretty bleak,” he said.
Shares in HDFC were up 1.1 percent, while NTPC fell 2.4 percent.
The Sensex provisionally ended 0.16 percent lower at 19639, and the 50-share Nifty gained 0.01 percent to 5959.
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Shares of NTPC were down 2.4 percent ahead of the PSU’s offer for sale (OFS). The government will sell 783 million shares in NTPC, thus bringing down its stake to 75 percent, to raise close to $2.1 billion at a floor price of Rs 145 per share, said CLSA in a report.
Meanwhile, Goldman Sachs has maintained ‘overweight’ rating on the Indian markets, supported by better earnings growth, reform push by the government and revival in global economy. For the year 2013, Goldman Sachs expects the Nifty to touch 7,000, which represents over 16 percent upside from the current levels.