Mumbai: After rising over 140 points in the day, Sensex on Friday gave up most gains and closed just 34 points up as sentiment turned sour after the CAG pegged loss in coal allocation at Rs 1.86 lakh crore and named Jindal Steel, Tata Power and Hindalco amongst firms which got blocks.
In a separate report, the CAG said RPower got undue benefit of Rs 29,033 crore when the government allowed use of surplus coal from blocks alloted to Sasan power plant for other projects. Reliance Power dropped 5.6 percent.
Tata Power declined by 3.71 percent, Jindal Steel Power lost 4.02 percent and Hindalco fell 2.5 percent, after CAG said it has found irregularities in the government coal allocation and usage.
Slamming the levy of development fee on passengers using Delhi Airport, the CAG also said on Friday that the Civil Aviation Ministry violated bid conditions for the benefit of GMR-led DIAL to the tune of over Rs 3,415 crore. Shares of GMR Infra tanked over 3 percent.
"Markets ended flat, reversing the earlier gains of the day. The CAG reports on coal, power and aviation impacted sentiments," said Dipen Shah, Head of Fundamental Research, Kotak Securities.
After rising to a high of 17,801.39, the BSE benchmark index dipped to a low of 17,622.62, after the CAG said private firms are likely to have gained about Rs 1.86 lakh crore from coal blocks allocated on nomination basis, which amounted to notional loss to national exchequer.
However, helped by buying in Tata Motors, Infosys, HUL and ITC, the Sensex concluded 33.87 points up at 17,691.08.
Similarly, the 50-share NSE index Nifty closed 3.35 points higher at 5,366.30.
Tata Motors led the 16 gainers in Sensex on Friday after reports said the company's global sales rose. Maruti settled with marginal gains after it announced on Thursday that production will resume at Manesar plant from August 21.
Traders said participants also appeared to have ignored the projection of a higher growth rate of 6.7 percent in 2012-13 by Prime Minister's key advisory body earlier on Friday.

Brokers said major market players were seen reducing their positions ahead of a long week-end following holiday on Monday on account of 'Ramzan Id'.
Asian markets ended mostly higher on positive cues from US stocks and after comments from Germany's chancellor to ease Eurozone debt worries.
Key indices in Shanghai, Hong and Japan moved up by 0.13 percent go 0.77 percent while indices in Singapore, Kospi and Taiwan eased by 0.03 percent to 0.58 percent.
European stocks also were quoting higher in the afternoon trade after the German Chancellor on Thursday said that the country will do whatever it can to preserve the euro.
The CAC was up by 0.43 percent, the DAX was up 0.28 percent and the FTSE was trading 0.26 percent higher.
Back home, 16 out of 30 Sensex-based scrips closed with gains while 14 finished with losses. Tata Motors rose by 2.12 percent, Infosys by 1.61 percent, HUL by 1.53 percent, ITC by 1.43 percent, Wipro by 1.17 percent, TCS by 1.16 percent, Dr Reddy's Lab by 0.99 percent and Bharti Airtel by 0.85 percent.
However, Jindal Steel fell by 4.02 percent, followed by Tata Power (3.71 pc), Hindalco (2.48 pc), GAIL (1.72 pc), L&T (1.48 pc), NTPC (1.00 pc), HDFC Bank (0.86 pc), Tata Steel (0.85 pc), Sterlite Ind. (0.82 pc) and Coal India (0.71 pc).
Among the sectoral indices, the BSE-FMCG firmed up by 1.26 percent and BSE-IT by 1.15 percent, while BSE-Realty fell by 1.71 percent, BSE-Power by 1.59 percent, BSE-Metal by 1.49 percent and BSE-CG by 0.85 percent.
The market breadth at the BSE remained negative as 1,498 stocks closed in the red while 1,344 settled with gains.
Total turnover was relatively low at Rs 2,155.10 crore from Rs 2,188.29 crore on Thursday.


Latest News  from Business News Desk