Use this space to put some text. Update this text in HTML Powered by Blogger.

Monday, 13 October 2014

Sensex, Nifty erase early gains; DLF tanks 21%, RIL gains

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. 

On the global front, markets were in the red with the US markets slumping and the S&P 500 falling below its average from the past 200 days. Meanwhile, the CBOE VIX jumped 16 percent, the highest level since June 2012. Nikkei that opened after a day’s holiday tanked 2 percent on a strong yen. More information please visit this site

No comments:

Post a Comment