Markets End On a Flat Note

Smart gains from the previous trading session were disrupted today, as the markets witnessed profit-booking owing to the near 3-month high levels scaled by the bourses yesterday. The markets ended flat today, as the Sensex closed marginally in the red at 19,674 down 15 points, while the Nifty ended at 5,902 up 2 points. After a dull opening today, the bourses started declining in the morning session itself. After an initial paring of losses around late morning, the markets slipped again, and exhibited range-bound trade. In the afternoon session, the Sensex slipped 207 points to the day's low of 19,524, as investors booked profits in the banking and IT counters on the back of robust gains made on Monday. The markets recovered gains partially after touching the day's low, but they continued to operate in a negative belt. As the markets neared closing, buying in the consumer durables, metal and realty counters propelled the Sensex to touch the day's high of 19,770, before consolidating gains to eventually close flat. Crude prices, which simmered above $120 dollars today due to political turmoil in Libya and Yemen, and political uncertainty in Nigeria, tightened the situation in West Asia. A sustained rise in oil prices threatens to inflate commodity prices, which in turn could mount pressure on the inflation scenario worldwide, especially in the emerging markets.