Markets End the Volatile Day Marginally in Red

Markets ended a volatile day on a flat note with selling pressure witnessed in banking heavyweights. The Sensex touched a high of 18,823 on sustained buying from FIIs in early trades. However, the index changed direction and slipped 140 points from the day's high to touch a low of 18,683. The BSE benchmark rebounded once again and finally ended at 18,727 - down 18 points. Nifty ended down marginally at 5,625 - down seven points. Broader markets, however, managed to stay in the green, albeit with nominal gains. The BSE small-cap index added 0.2% at 8,357. Mid-cap index was unchanged at 6,962. Foreign Institutional Investors (FIIs) have been investing heavily in Indian markets. According to provisional data, FIIs have bought shares worth Rs 2,557 crore from July 1, 2011. Fresh euro-zone debt concerns unfolded late on Tuesday, when Moody's downgraded Portugal's long-term government bond ratings to speculative. Asian markets were mostly in red. Hang Seng shed 1% at 22,518. However, Nikkei advanced 1% to 10,082. Seoul Composite and Taiwan Weighted moved up while Shanghai Composite ended in the red. Selling pressure was witnessed in banking stocks with the BSE bankex declining 1% at 12,915. Most of the private banks slipped in trades, led by Kotak Mahindra Bank and Axis Bank. Heavyweight, ICICI Bank slipped 2% to Rs 1,075 - the biggest loser among Sensex stocks as well. Canara Bank and SBI dropped 1-2% each.