Mood swings on the bourses amid expectations of a rate cut announcement by the US Federal Reserve led to a volatile trading session today and the Bombay Stock Exchange’s benchmark, the Sensex, ended the day over 36 points higher.
The Sensex, which commenced Samvat 2065 on a cheerful note yesterday, remained volatile by swinging between 9,297.76 and 8,894.34, before ending higher by 36.43 points at 9,044.51.
Similarly, the wide-based National Stock Exchange’s index, the Nifty, rose by 12.45 points at 2,697.05, after touching the day’s high of 2,781.25 and a low of 2,631.90 points.
Marketmen said the trading sentiment remained extremely volatile on expectations that the US Federal Reserve might cut interest rate, a measure to control troubled financial markets.
They said the market also remained jittery on reports of the finance minister meeting chiefs of the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) later in the day.
Short-covering provided support to the market, which dropped nearly 37 per cent this month, ahead of expiry of the October month derivatives segment, they added.
According to provisional data, FII sold shares worth Rs 69.18 crore while Domestic Financial Institutions (DIIs) bought shares to the tune of Rs 24.78 crore.
Despite remarkable falls in the realty, pharma, FMCG and banking segments, a smart rise in some of the metals, refinery and auto counters helped the Sensex end in the green.
The metal index gained the most followed by oil and gas as segment major Reliance Industries recorded a gain of 12.07 per cent at Rs 1204.40.
Brokers expected that the market would gain further momentum looking at sharp rally in New York yesterday, but yesterday’s strong rebound on the Samvat 2065 proved to be short-lived.
