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Sensex flirts with 20,000

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Capital Market
Last Updated : Sep 11 2013 | 11:55 PM IST

A bout of volatility was witnessed as the key benchmark indices slipped into the red again after reversing initial losses in morning trade. The barometer index, BSE Sensex, alternately moved above and below the psychological 20,000 level in intraday trade. The Sensex was down down 71.23 points or 0.36%, off 129.67 points from the day's high and up 105.62 points from the day's low. The market breadth, indicating the overall health of the market, was strong.

Index heavyweight and cigarette major ITC edged lower. Metal and mining stocks extended Tuesday's gains triggered by stronger-than-expected retail and industrial data in China. Capital goods gained on fresh buying.

Key benchmark indices edged lower in early trade to profit booking after Tuesday's rally. A bout of volatility was witnessed as the key benchmark indices slipped into the red again after reversing initial losses in morning trade. The barometer index, BSE Sensex, and hit CNX Nifty, both, hit their highest level in almost 7 weeks.

Foreign institutional investors (FIIs) bought shares worth a massive Rs 2563.60 crore on Tuesday, 10 September 2013, as per provisional data from the stock exchanges. The Sensex had jumped 3.77% on Tuesday after the latest data showed that India's trade deficit, the key driver of the country's large current-account deficit, narrowed to five-month low in August 2013.

In the foreign exchange market, the rupee edged lower against the dollar after Tuesday's strong gains. The partially convertible rupee was hovering at 63.93, weaker than its close of 63.84/85 on Tuesday, 10 September 2013.

At 10:16 IST, the S&P BSE Sensex was down 71.23 points or 0.36% to 19,925.86. The index rose 55.76 points at the day's high of 20,055.53 in morning trade, its highest level since 25 July 2013. The index lost 179.53 points at the day's low of 19,820.24 in early trade.

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The CNX Nifty was down 14.45 points or 0.25% to 5,882.30. The index hit a high of 5,913.45 in intraday trade, its highest level since 26 July 2013. The index hit a low of 5,842.10 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 793 shares gained and 447 shares fell. A total of 47 shares were unchanged.

The total turnover on BSE amounted to Rs 521 crore by 10:20 IST compared to Rs 186 crore by 09:30 IST.

Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.

Index heavyweight and cigarette major ITC lost 1.21% to Rs 331.35. The stock recovered after falling as much as 2.46% at the day's low of Rs 327.15.

Metal and mining stocks extended Tuesday's gains triggered by stronger-than-expected retail and industrial data in China. China is the World's largest consumer of copper and aluminum. Sesa Goa (up 1.29%), Hindustan Zinc (up 1.08%), Jindal Steel & Power (up 0.9%), Tata Steel (up 1.58%), Sail (up 1.25%), Hindalco Industries (up 2.72%) and JSW Steel (up 1.85%), edged higher.

Capital goods gained on fresh buying. ABB (up 0.37%), BEML (up 1.44%), Crompton Greaves (up 0.89%), L&T (up 2.14%), Siemens (up 0.69%) and Thermax (up 1.05%) gained.

Bharat Heavy Electricals (Bhel) fell 1.12% to Rs 140.90, with the stock declining on profit booking after recent strong gains. Shares of Bhel had rallied 19.43% in prior four sessions to settle at Rs 142.60 on 10 September 2013, from a recent low of Rs 119.40 on 3 September 2013.

Asian stock markets were mostly lower on Wednesday, 11 September 2013, with investors treading a bit cautiously after the recent strong upmove. Key benchmark indices in Taiwan, Hong Kong, Indonesia, South Korea and Singapore fell by 0.07% to 0.7%. Key benchmark indices in China and Japan rose by 0.63% to 0.78%.

US stocks rallied on Tuesday, 10 September 2013, with the S&P 500 continuing its longest stretch of gains since mid-July, after upbeat data from China and amid heightened diplomacy on Syria.

US President Barack Obama called for diplomacy in dealing with chemical weapons in Syria but kept open the possibility of military action against the Assad regime. Obama late Tuesday said he was sending US Secretary of State John Kerry to Geneva to meet Russian Foreign Minister Sergey Lavrov to work out details of a plan to have Syria, led by President Bashar al-Assad, give its chemical weapons stockpile to the international community. Obama had called for potential strikes against Syria in retaliation for Syria's use of chemical weapons against civilians in late August. But with a diplomatic solution on the table, Obama asked Congress to delay a vote on whether to authorize military strikes.

Investors across the globe are eyeing the next policy meeting of the Federal Open Market Committee (FOMC) scheduled this month, with their focus squarely on the timing of tapering of Federal Reserve's bond purchases. The FOMC holds a two-day policy meeting on 17-18 September 2013 to decide on interest rates in the United States. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.

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First Published: Sep 11 2013 | 10:24 AM IST

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