After opening positively on Thursday (July 31), Indian equities continued to remain volatile all through the day on account of F&O expiry and high inflation figures.

BSE Midcap and Smallcap index closed on a negative note after declining 0.24% and 0.21% respectively.

The majority of Asian stocks climbed up on Thursday, led by mining companies as oil rates surged over $ 4 per barrel on July 30, and metals advanced.

Finally, the Sensex closed the day with a small gain of 68.54 points at 14,355.75 after touching an intraday high of 14,369.59. On the other hands, the broad-based NSE Nifty marked its closure at 4,332.95, up 19.04 points, after hitting a high of 4,342.

For the week ended on July 19, 2008, the wholesale price index, inflation, climbed up to 11.98%, as against 11.89% during the previous week.

Out of the total 2,697 stocks traded at BSE, 1,296 moved on, 1,326 turned down whereas 75 remained unchanged.

All sectoral indices traded positive except Bankex (0.10%), I.T (0.87%), Teck (0.99%) and Health Care (1.09%).

All sectoral Indices traded positively apart from Bankex, which fell 0.10%, I.T declined 0.87%, Teck dropeed 0.99% and Health Care rejected 1.09%.

The major gainers in the 30-share index were Tata Power, which gained 4%, Tata Steel profited 3.95% and DLF surged 3.79%.

Tata Motors was the major laggard on BSE, which lost 3.13%. While other losers includes Grasim Industries that declined 2.78% and Maruti Suzuki dropped 2.36%.

While commenting on yesterday’s market condition, stock market analyst Vishwas Agarwal, said 14,350 is crucial to maintain the stock market and also for more upward movement. Below this level, the stock market will be unstable. Inflation is high but growing trend, which is reducing, is an optimistic signal.

“Some bankers have increased PLR and deposit rates, which will hurt the automobile and realty stocks for time being. There is some stock specific accumulation. The next six months view is that all efforts by RBI and government will have a positive impact on the market. If crude price and world markets support then we can see a good and healthy equity market, he added.

P.K. Agarwal, president - research, Bonanza Portfolio commenting on the daily market performance stated, “Indian markets drew strength from positive sentiments in US markets for past two days in a row. As a result Nifty held its ground in spite of F&O expiry.”

“Indian markets seemed to have completely absorbed negative impact of Repo and CRR hike by RBI two days ago. It appears that inflation data to be announced today will also be taken in its stride,” he added.

Mr. P.K. Agarwal supposed that stock markets may open the new August series on a strong note. Nifty is likely to find support at 4,250 and resistance at around 4,375.