Sensex Ends Flat But Posts First Weekly Gain in Five

Reversing early gains, BSE Sensex and Nifty closed nearly flat on Friday. But for the week the BSE Sensex gained 1.62 per cent, and Nifty gained 1.75 per cent - recording their first weekly gain in five weeks.

Here are top 10 developments:

1) With the September 17 Fed meet drawing closer and today being the final trading day of the week, the mood turned cautious as the session progressed. In early trade, the Sensex rose as much as 253 points at 25,875 while Nifty jumped above 7,850. But at the end of the session, the Sensex closed 12 points lower at 25,610 while Nifty settled almost flat at 7,789.

2) Also, keeping traders edgy, the domestic industrial output data will be announced post market hours today. The inflation data is also scheduled to be released on Monday.

3) Global markets also remained edgy today with Asian stocks closing mixed while European stocks edged lower reversing early gains.

4) The Federal Reserve is expected to raise its interest rate next week amid improving economic recovery in the US. However, some analysts say that the recent turmoil in the global markets triggered by the devaluation of China's currency could force the Fed to delay the rate hike.

5) Analysts say that in the short term Indian markets are likely to take cues from its global peers, which are expected to remain volatile due to the uncertainty over the Fed rate hike.

6) Analysts also remain worried about the relentless selling from foreign investors in Indian stock markets. Foreign investors sold a record Rs 16,877 crore worth of domestic stocks in August. On top of that, they sold Indian stocks worth nearly Rs 6,000 crore in the past eight sessions.

7) An interest rate hike in the US could accelerate the selling from foreign investors who would like to park their money in US bonds. Besides, a rate hike in the US would strengthen the dollar, putting further pressure on rupee.

8) Domestic institutional investors have been buyers of stocks despite the selloff from foreign investors, providing some support to Indian markets. On Thursday, they bought shares worth Rs 66 crore.

9) IT, realty and FMCG stocks outperformed today while selling pressure was seen in metal and oil & gas stocks. The breath of the market was in favour of gainers on BSE: 1,471 stocks advanced while 1,180 declined. The BSE midcap index rose 0.20 per cent while the smallcap index gained 0.63 per cent.

10) Also weighing on the domestic stock markets the rupee fell to 66.58/dollar at day's low. The rupee had closed at 66.43 on Thursday.