Sensex ends flat after hitting 10-week high

The BSE benchmark Sensex failed to maintain the initial gains due to heavy profit booking mainly in banking and IT sectors,despite fag-end buying in oil and gas sector,driven by a hike in petrol prices.

In a major decision to bring petroleum products in line with market rates,the Central Government decided to deregulate petrol prices,hiked diesel prices by Rs two a litre,cylinder by Rs 35 and kerosene by Rs three per litre.

The price hike and decontrol move fuelled a strong demand for oil stocks,mainly of public sector undertakings (PSUs),cushioning the Sensex fall to a large extent.

Story continues below this ad

Banking stocks fell on expectations of rate hike,while metal counters suffered losses,as prices dropped on the London Metal Exchange (LME).

Early in the week,the 30-share Sensex rose sharply to hit a 10-week high at 17,919.