Markets erase early gains on CAG report; end steady

Markets erased much of the strong gains witnessed in the morning to end the day steady, following the tabling of the CAG report in parliament.

The BSE Sensex ended the day higher by 33 points, while the S&P CNX Nifty ended the day higher by 3.35 points at 5366 points.

Shares of power companies were hammered down following the CAG report that alleged that coal linkages to certain power projects were favoured. Shares of Reliance Power was down more than 5.5%, while Tata Power shed almost 4%.

Shares of GMR too tanked following unfavourable comments from CAG which slammed the levy of development fee on passengers using Delhi Airport.

The CAG said that the Civil Aviation Ministry violated the bid conditions for the benefit of GMR-led DIAL to the tune of over Rs 3,415 crore.

Shares of Tata Motors rallied by more than 2%, following an impressive global sale of vehicles.

Meanwhile, European markets continued to trade firm following comments from German Chancellor Angela Merkel who indicated commitment in salvaging the euro. All of the European indices including the UK's FTSE, the German DAX and the French CAC were trading higher.

Markets are expected to trade steady and largely follow European cues in the coming days.

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