Sensex recoups loss on Europe cues; Sugar stocks gain

Indian shares recouped the earlier marginal losses on Europe cues and ended flat today. There were no domestic triggers for the stock market.

The Sensex had opened 40 points lower and edged up 25 points to closeat 18700.96and the Nifty 11.20 points at 5687.25.

Wholesale price-based inflation in September accelerated but almost in line with expectation and hit 7.81 percent on year, as the government’s fuel price increase took effect, dampening hopes of a rate cut by the central bank when it reviews its policy on 30 October. The market has already priced in a higher inflation.

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Meanwhile,Planning Commission Deputy Chairman Montek Singh Ahluwalia said that the economy will turn the corner in the next six months as the deceleration of the past several quarters has been arrested.

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“It is our hope that in the second half of the year, which has begun just now, many of the measures taken by the government in the recent past to revive investor confidence will lead to a turnaround setting in in the second half,” Ahluwalia said.

He, however, said inflation is above comfort level.

The FIIs were net sellers of Rs 334 crore in the F&O segment on Friday, according to the provisional NSE data. The foreign funds were net buyers of Rs 987crore in the cash segment on Thursday while the Mutual Funds were net sellers of Rs 166 crore, according to the SEBI figures.

Oil and Gas and Bank stocks edged marginally up.

Stocks in news

RILwas up half a percent ahead of its quarterly results today.

Infosys extended losses and was down 1.26 percent.

Sugar stocks including Shree Renuka Sugars (1 percent) , Belrampur Chini (5 percent) were up after millers were allowed to sell sugar freely in the open market.