Equity
benchmarks gained half a percent in opening trade led by easing CPI inflation
in September and better-than-expected numbers from Reliance Industries in Q2,
but could not sustain those gains.
The Sensex
fell 45.99 points to 26338.08 and the Nifty declined 19.05 points to 7865.20
weighed down by technology, metals, private banking and financials stocks.
About 781
shares have advanced, 510 shares declined, and 39 shares are unchanged on the
Bombay Stock Exchange.
Shares of
Bajaj Auto gained 1.5 percent ahead of Q2 earnings. Axis Bank, Coal India,
Bharti Airtel, Reliance Industries and IndusInd Bank rose 1.3-1.6 percent.
However,
DLF tanked 18 percent after market regulator SEBI barred company and its six
executives from accessing capital markets for 3 years. Hero Motocorp, Cipla,
ITC, Dr Reddy's Labs, BPCL and HCL Technologies were under pressure.
And what
brought some much-needed macro cheer for the economy, the consumer price index
(CPI) for September fell to all-time low of 6.46 percent versus expectations of
7.2 percent. Meanwhile, in key data today, the wholesale price index (WPI) for
September is expected to soften further to 3.1 percent.
The Indian
rupee gained in the opening trade. It rose 15 paise to 60.93 per dollar versus
previous day's closing value of 61.08 a dollar.
Ashutosh
Raina of HDFC Bank said the global growth concerns are back to haunt the
markets, resulting in re-emergence of risk-off sentiment. "The WPI
inflation number, declared after market hours yesterday, should cheer the
markets," he added.
He expects
the currency to trade in a 60.50-61.50/dollar range, with an appreciating
bias."
The dollar
fell against a basket of major currencies on persisting concerns about global
economic growth and worries that the Federal Reserve may delay its first
interest rate hike.
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