Sensex oscillates nearly 350 pts intra-day, closes 68.5 pts up.
The stock markets rose today on the back of optimistic growth forecast by the Economic Survey. In a day marked by high volatility, the National Stock Exchange Nifty swung over 60 points intra-day and the BSE Sensex oscillated almost 350 points between intra-day high and low.
India VIX, a measure of the market’s expectation of volatility over the near term, lost 3.30 per cent and closed at 27.27. This is the index’s steepest fall since February 14. While it lost ground, it is still quite high compared to the recent past. During the day, it touched 29.05 — the highest in the current calendar year. On Thursday, when the Nifty lost 175 points, VIX had risen more than six per cent.
The Sensex today closed 68.5 points, or 0.39 per cent, up at 17,700. The Nifty settled at 5,303, up 40.85 points, or 0.78 per cent.
Thirteen out of the 30 Sensex stocks closed in the green. Among Sensex gainers were Tata Motors, up 4.43 per cent at Rs 1,105.10, followed by ICICI Bank (3.55 per cent), ITC (three per cent) and SBI (2.09 per cent). Reliance Communications was the worst loser among Sensex stocks. Its shares were down 5.4 per cent at Rs 87.55, followed by Reliance Infra (-4.58 per cent), Mahindra & Mahindra (-3.38 per cent) and Hindalco Industries (-2.48 per cent).
The markets started the March derivatives series with smart gains. The impact of the largely populist railway budget was countered by the upbeat tone of the Economic Survey. However, market experts said Friday’s gains did not come easy as key indices were highly volatile in the afternoon session. They said the market was likely to remain nervous in the coming sessions.
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Amar Ambani, head of research, India Infoline, said, “The overall undertone may continue to be a little nervous, and so one needs to be watchful. One has no option but to wait for a trend reversal to take hold. We expect the downward pressure to prevail in the near term and do not rule out the possibility of the Nifty re-testing its intermediate low of 5,177.”
Rail stocks fall sharply
Rail stocks on Friday fell sharply by up to 14 per cent on the Bombay Stock Exchange after the Railway Budget, which according to market players failed to bring any great surprises for investors. Shares of companies related to Indian Railways, including Kalindi Rail Nirman, Titagarh Wagons, Kernex Microsystems (India) emerged as the major laggards. Kalindi Rail Nirman shed 13.74 per cent to close the day at Rs 116.45. Intra-day, the stock plunged by 17.77 per cent hitting a 52-week low of Rs 111 on the BSE. The wagon manufacturer Titagarh Wagons' shares dipped 13.06 per cent to settle at Rs 331.80.
Railway equipment provider Kernex Microsystems (India) finished the day at Rs 94.60, down 4.97 per cent. Heavy equipment majors Bharat Earth Movers Ltd (BEML) and Stone India lost 2.90 per cent and 7.53 per cent, respectively. Bucking the trend were Container Corporation Of India and Gateway Distriparks whose shares rose 3.15 per cent and 0.65 per cent to close the day at Rs 1,130 and Rs 115.85, respectively.