Market ends with choppy trading session Sensex 17591 (-48) Nifty 5262 (-11)
The key benchmark indices edged lower in volatile trade as an imminent hike in key short-term interest rates by the Reserve Bank of India (RBI) at a policy review next week weighed on investor sentiment. Stocks fell for the fourth straight trading session. In global cues, European stocks turned positive from negative and US index futures were off lows. Earlier, Asian stocks edged lower. The BSE 30-share Sensex was provisionally down 68.71 points or 0.39%, off close to 95 points from the day's high and up close to 40 points from the day's low. The market breadth was weak.
Intraday volatility was immense. Stocks cut losses soon after an initial slide caused by weak Asian stocks. The market weakened shortly with the Sensex hitting a fresh intraday low in early trade. The market bounced back from lower level in morning trade. The market slipped into the red once again after briefly regaining positive zone in mid-morning trade when it hit a fresh intraday high. The market moved in a range in early afternoon trade.
Weak opening of European markets kept domestic bourses depressed in afternoon trade. Stocks extended losses later. A sudden rebound saw the Sensex briefly regaining positive zone in mid-afternoon trade as the barometer index hit a fresh intraday high. The market again slipped into the red.
Reliance Industries (RIL) edged lower in volatile trade. Another index heavyweight ICICI Bank came off the day's high. Realty stocks fell on fears of interest rate hike by the Reserve Bank of India (RBI) next week. Auto, IT and telecom stocks also fell. Capital goods stocks were mixed. However, FMCG stocks gained on defensive buying as the Sensex fell for the fourth day in a row.
Expectations of good fourth quarter result by India Inc and heavy foreign fund inflows boosted the domestic bourses in recent weeks with the key benchmark indices surging to their highest level in more than 25 months on 7 April 2010. The market witnessed a correction later.
Rising inflation remains a key cause for concern. A sharp surge in interest rates may adversely impact private investment demand as well as the proposed large scale investment in the infrastructure sector.
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With Regards,
Kushagra Mehta
http://www.daytradi
Happy Trading,
United we grow!!!
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