The 30-share index BSE Sensex ended slightly higher on Monday, Aug 25 after an early rally bolted out of steam, following a negative opening in European markets and as oil prices climbed up from a sharp fall.

Volume was light as capitalists were wary of foreign funds, which have been heavy sellers during the year (2008), while a decelerating domestic financial system and soaring interest rates gave some relief.

The Sensex closed the day at 14,450.35 after gaining 48.86 points, 14,450.35, while the broad-based Nifty ended with a gain of 7.9 points at 4,335.35. The Sensex lost more than 220 points and Nifty over 63 points from day’s high of 14,672.69 and 4398.80, respectively.

The top heavyweight stocks declined sharply lower from the day’s high and closed marginally in green as heavy selling activity was seen in metals, power, oil and capital goods.

However real estate, banking, FMCG, telecommunication, select technology and auto stocks were positive towards frontline indices. Midcap and small cap stocks also saw selling pressure.

The stock market drew back from day's high, struck in early afternoon trade, as index heavyweight Reliance Industries (RIL) together with banking shares comforted. A sharp fall in the oil price and noteworthy gains in US stocks on Aug 22 had sparked off a strong opening.

Asian markets remained strong, whilst European markets were subdued. Key benchmark indices in France and Germany lost 0.57% and 0.23% respectively. Stock markets in UK remained closed.

The overall turnover on BSE stood at Rs 3239 crore, brokers said.

Realty index gained 98.79 points and ended strongly at 5043.52 points, followed by Bankex Index hardened by 89.96 to 6745,42, Auto index gaining by 26.33 to 3865.85, Tech index by 23.05 to 3020.76 and MID Cap climbed up by 14.36 to 5741.21 points.

But BSE Metal index rejected 120.56 to close low at 12,243.37 points, CG index fell by 67.87 to 11,857.49 points, Oils & Gas index by 56.47 to 9885.19 points, Power index by 24.80 to 2573.16 points and PSU index was lower by 23.40 to 6687.07 points.

On the BSE, the major gainers were HDFC, Grasim, HDFC Bank, ICICI Bank, DLF Ltd, Infosys Tech, Satyam Comp and Rel Infra.

However, a few top heavyweight shares, which drifted lower on profit booking at higher level by local operators included Tata Power, BHEL, Reliance, Ranbaxy, Tata Steel, Steerlite and Maruti Suzuki.

Stock market analyst Vishwas Agarwal stated that 14,350 is crucial support level on the Bombay stock Exchange, and if the stock market trades below this level, there is chance of market falling upto 14,150 and 13,888.

For upward movement the market has to cross 14,786, he also said.

“Nuclear Supplier Group (NSG) inconclusive meeting combined with high inflation rates and FII selling is keeping the market in doubt thus keeping the traders and investors from participating in the markets. Reliance Industries, SBI and Reliance communication are mood decider stocks for the entire market,” Mr. Agarwal added.