The new Foreign Trade Policy failed to cheer investors as the markets closed flat today after witnessing highly volatile trade.
While select blue-chips such as Bharti Airtel and Wipro attracted buying, Tata Steel and Tata Motors came under selling pressure. In choppy trade, the BSE Sensex moved in a range of 170 points before settling up by 11.22 points at 15,781.07, thus completing six straight days of gains, the longest winning streak in four months.
Experts said market is facing a strong resistance at these high levels. “The market is having an upward bias but is facing a strong resistance at this levels,” said Bonanza Portfolio Assistant Vice President Avinash Gupta.
After the announcement of the new Foreign Trade Policy, which extended many tax incentives for trade with Asian and African markets, textile stocks gained in the range of 1-3 per cent after shedding some initial gains.
“Textile shares had been going up in the recent past in anticipation of trade policy announced today. The shares ended with gains. But they were off their highs. The shares softened in the later part of the trading,” said Gupta.
Elsewhere, Asian indices closed in the red with the Hang Seng down 1.04 per cent and Nikkei 1.56 per cent while European markets were trading in the green this afternoon.
Consumer durables shares, however, cheered the new trade policy and rallied. Export-oriented Gitanjali Gems gained 4.65 per cent, while Rajesh Exports was up 8.58 per cent. Videocon was up 8.51 per cent and Titan Ind 3.21 per cent.
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The BSE CD Index gained 4.11 per cent. Sensex stock Bharti Airtel, India’s largest mobile phone company, jumped 2.74 per cent on reports that the company and MTN Group may agree on a merger deal by mid-September.
IT major Wipro was up 2.01 per cent, followed by Tata Power at 1.70 per cent, L&T at 1.56 per cent, Sterlite ar 1.45 per cent, BHEL at 1.34 per cent and Mah&Mah at 1.20 per cent.
Country’s largest private sector steel manufacturer Tata Steel tumbled by 5.14 per cent after the company reported a consolidated net loss of Rs 2,238.53 crore for the first quarter ended June 30, 2009.
Among other major losers, Tata Motor was down 2.55 per cent, Hindustan Unilever 2.32 per cent, Hero Honda 1.77 per cent, DLF 1.68 per cent and REL Comm 1.50 per cent.
The market breadth was positive with 1,638 gainers against 1,128 losers on the BSE.
The trading volume was relatively low at Rs 6,581.02 crore from Rs 6,917.41 crore on Wednesday. Aban Offshore was the day’s most active scrip with highest turnover of Rs 385.31 crore.