Domestic stock markets ended flat on the last trading session of the week, as investors remained cautious ahead of the US central bank meeting next week.
While the benchmark BSE Sensex closed 11 points lower at 25,610, the NSE Nifty almost ended flat at 7,789 points. The Sensex opened over 200 points higher in the morning session, but could not sustain the gains as traders booked profits.
"The market will remain more at the mercy of global cues. The Fed hike, for all the hue and cry, can also be read as a reflection of a spiraling US economy. A much bigger concern than Fed hike, in my opinion, would be another round of yuan depreciation, which could spark off another currency war. The IIP numbers later on Friday and the WPI and CPI numbers will grab temporary attention," IIFL head of research Amar Ambani said.
Global markets, including India, remain cautious going into Federal Open Market Committee (FOMC) meeting in the US on 16-17 September, although analysts have recently pared back their expectations on an interest rate hike at the meeting.
"We believe the recent tightening in financial conditions and increased uncertainty on global growth will sway the Fed to keep rates unchanged at its meeting next week, despite a strong labour market and solid domestic demand," said Danske Bank in a note.
Among the sectoral indices, the metal index was the biggest loser, which fell by 0.9%. Bankex, Capital Goods and Power indices also posted losses.
Profit taking in banking stocks led to a decline in stock prices of ICICI Bank, Axis Bank and HDFC Bank. Infosys rose 1.3% on the reports of increase in stipend for interns. India's second largest IT firm Infosys said that it wants to raise the stipend payment rather than increasing the compensation packages for the campus recruits.
Stock prices of Tata Motors ended 2.4% lower as the company's sales dropped by 2.79% to 29,683 units in August compared to the same month a year earlier.
While SBI, ONGC, HDFC and Wipro posted gains, Tata Steel, Vedanta, GAIL and BHEL witnessed losses.
A notable event in the markets today was 75% increase in share prices of Amtek Auto after the company management rejected rumours on its bankruptcy. The company said that it would cooperate with the stock market regulator in its probe into charges of stock price manipulation.
Amtek Auto price touched an intra-day high of Rs 53.15, before paring some gains and closing at Rs 46.70, up 53.62%.
"The promoters have always and will always continue to support the business just like that they have done over the last nearly 30 years," The Economic Times quoted Amtek Auto senior MD John Flintham as saying.
FMCG stocks, like ITC and HUL, ended in green ahead of the consumer price inflation data on Monday.
Snapping a three-day losing streak, gold prices rose marginally by Rs 45 as jewellers increased the buying of metal ahead of wedding and festival seasons. Silver prices fell by Rs 50 to Rs 35,200 per kg due to reduced demand from industries and coin manufacturers.
