The domestic equity market swung between gains and losses and then closed flat as investors built up for fresh signals from the US Federal Reserve. Wednesday’s expiry of August series F&O contracts also weighed in on investor sentiment.

Fed Chair Janet Yellen is scheduled to deliver a speech at Jackson Hole on Friday, when she is widely expected to give markets a reality check on the health of the US economy and the future rate trajectory.

Taking cues from the weakness in the US market in overnight trade, the domestic equity markets traded in the negative territory for most part of the day before bouncing back some 100 points to end flat.

The S&P BSE Sensex ended the day at 27,990.21, up 4.67 points or 0.02 per cent. The NSE’s Nifty50 settled at 8,632.60, down 3.45 per cent or 0.04 per cent. The Sensex had slipped some 100 points and the Nifty50 had fallen below 8,600 on news that the Indian Railways raised freight rates by up to 19 per cent, which could potentially trigger a spike in inflation, pre-empting any further rate cut by the Reserve Bank of India (RBI).

Market experts still insisted that it still remains a ‘buy on dips’ market.

“Even something that was clearly adverse and inflationary in nature was not able to push the Nifty50 below the 8,600 level. Clearly, many stocks were totally not interested in going down. That indicates that this continues to remain a buy-on-dips market. Bank Nifty also remained a buy,” said Dr CK Narayan, Founder, Chart Advise.
InfosysBSE 2.35 % lead the gainers in the Sensex pack, as it snapped an eight-day losing streak to notch up 2.35 per cent gain. Heavyweight Tata Consultancy ServicesBSE 2.03 % (TCS) followed suit to log 2.03 per cent gain, while Asian PaintsBSE 0.99 % rose 0.99 per cent, Bharti AirtelBSE 0.96 % 0.96 per cent and WiproBSE 0.82 % 0.82 per cent.

NTPCBSE -2.90 % ended at the bottom of the Sensex pack, losing 2.90 per cent, followed by Bajaj AutoBSE -1.92 % (down 1.36 per cent), L&T (down 1.11 per cent), ITCBSE -1.08 % (down 1.08 per cent), and Sun PharmaBSE -0.97 % (down 0.97 per cent).

In the sectoral landscape, IT stocks made impressive gains as the BSE IT index advanced 1.82 per cent, led by gains in the shares of 8K MilesBSE 8.82 % (up 8.82 per cent) and Tanla SolutionsBSE 4.28 % (up 4.28 per cent). BSE Bankex added 0.11 per cent led by gains in the shares of Bank of BarodaBSE 2.66 % (up 2.66 per cent) and Federal BankBSE 0.98 % (up 0.98 per cent).
Among specific stocks, Welspun IndiaBSE -19.99 % was the biggest newsmaker, as it hit a lower circuit at 20 per cent for the second straight session and remained locked at Rs 65.85. Welspun’s third largest customer WalMart is reviewing cotton certification records after Target cancelled its contract.

Hindustan CopperBSE -5.49 % lost 5.49 per cent after posting a first quarter loss at Rs 2.9 crore against a profit after tax of Rs 20 crore year-on-year.
Nitesh EstatesBSE 7.67 % saw a 7.67 per cent spurt after a block deal. MEP Infrastructure Developers rose 3.78 per cent after winning a contract worth Rs 79.2 crore.
Nitesh EstatesBSE 7.67 % saw a 7.67 per cent spurt after a block deal. MEP Infrastructure Developers rose 3.78 per cent after winning a contract worth Rs 79.2 crore.

EdelweissBSE -1.17 % initiated coverage on Prabhat Dairy with a buy rating and a target at Rs 144. The stock rallied 7.44 per cent.

EdelweissBSE -1.17 % initiated coverage on Prabhat Dairy with a buy rating and a target at Rs 144. The stock rallied 7.44 per cent.
Shares of Shriram EPCBSE 10.66 % surged 10.66 per cent after its Sharjah unit bagged an order from Moon Iron and Steel Company.

Elsewhere in Asia, China’s Shanghai Composite closed 0.16 per cent higher while Hong Kong’s Hang Seng index closed unchanged. Japan’s Nikkei index lost 0.61 per cent.

At the time of writing of this report, London’s FTSE100 was trading 0.40 per cent higher, while Germany’s DAX was up 0.66 per cent France’s CAC40 0.53 per cent.