Markets end flat amid weakening rupee

Benchmark share indices erased most of the day gains and ended flat on Monday as the weakening Indian rupee weighed on market sentiment. The Indian rupee weakened to 54.85 against the US dollar.

The Sensex ended at 16,183, up 30 points and the 50-share Nifty closed at 4,906 up 15 points.weakened to 54.85 per US dollar

Earlier in the day, the markets had opened higher led by buying witnessed by the capital goods, banking and realty sector stocks.

The Nifty touched an intra-day high of 4,937 while the Sensex touched a high of 16,298.

Meanwhile, the European markets were trading on a mixed note. The CAC 40 index advanced 12 points to 3,020, DAX was up 45 points at 6,317. While, the FTSE was down 46 points at 5,292 levels.

The Asian markets ended on a flat note.

The Shanghai ended higher by 4 points at 18,922 and the Hang Seng closed lower by 29 points at 18,922.

Japan's Nikkei average inched up on Monday by 23 points to end at 8,633, with short-covering prompting a recovery from the sharp losses of the previous session, and a call from world leaders for Greece to remain in the euro zone helping to soothe investors' worries.

Capital goods stocks witnessed renewed buying interest.

The BSE capital goods index was the top sectoral gainer, up 2% or 170 points to 8,888. Realty, power, bankex, PSU, oil & gas, auto and metal indices also ended higher by 0.4-1.9% each.

At the same time, IT, FMCG and teck indices ended in the red, down 1-1.2% each.

Back home, State Bank of India extended its Friday's rally.

The stock surged 3.4% to Rs 2,007 on the back of better than expected fourth quarter results announced on Friday.

Larsen and Toubro also jumped 2.3% to Rs 1,189 after the company said that L&T Construction bagged new orders valued at Rs 744 crore during the first quarter of 2012-13

so far.

BHEL ended up 2.5% at Rs 206.45 after it said it has bagged a contract for supplying equipment at Solapur Super Thermal Power Project in Maharashtra.

L&T ended up 2.4% at Rs 1,189 after the company said L&T Construction has bagged new orders valued Rs 744 crore during the first quarter of 2012-13 so far.

Maruti Suzuki, Coal India, Hindalco, Sun Pharma, DLF, index heavyweight Reliance Industries, Gail India, ICICI Bank and HDFC were also among the gainers, up 0.7-3.4% each.

On the other hand, Wipro, ITC, Infosys, Sterlite Industries, Cipla, HUL, NTPC, Bharti Airtel, ONGC, Bajaj Auto, Jindal Steel and HDFC Bank were among the losers, down 0.6-2.2% each.

Among the individual stocks, Anil Dhirubhai Ambani Group (ADAG) shares were in limelight on the bourses after Reliance Capital reported a turnaround results for the quarter end March 2012.

Reliance Capital, Reliance Infrastructure, Reliance Communications and Reliance Power ended higher by 3-8% on the Bombay Stock Exchange.

TV Today Network surged 20% to Rs 65 after the company said that Aditya Birla Group agreed to make a financial investment of 27.5% in Living Media India, India Today Group company, through its private investment company.

Himachal Futuristic Communications Ltd (HFCL) hit the upper circuit filter of 20% at Rs 12.69 on reports that Reliance Industries (RIL) plans to roll out its 4G network in partnership with the company.

Suzlon Energy, Havells India, Crompton Greaves, BEML, Punj Lloyd, BEL and Alstom Projects were the top gainers among the capital goods stocks.

The broader markets outperformed the benchmark indices.

The BSE mid-cap index ended higher by 24 points at 5,888 and the small-cap index jumped 62 points to 6,317 levels.

The overall breadth was positive as 1,643 stocks advanced while 1,027 stocks declined.