India Stocks Review: Recoups loss to end flat on Fed rate cut hope
Tuesday, Sep 16
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Bombay Stock Exchange : National Stock
Exchange
Sensex: 13518.80, down 12.47 pts (0.1%): Nifty: 4074.90, up 2.00 pts
(0.05%)
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The banking sector and index heavyweight Reliance Industries led
the recovery in local share indices, with Nifty ending in positive
territory for the first time in six sessions.
Expectations of a likely interest rate cut by the Federal Open
Market Committee, which meets Tuesday, triggered short covering back
home.
The recovery today was on expectations of a rate cut by the US Fed
which could provide some relief to markets. Also, there is a lot of
speculation that there are not likely to be more rate hikes from RBI.
Sensex recovered nearly 470 points from the session's low to end
at 13518.80, down 12.47 points, or 0.1%, from Monday.
Nifty closed at 4074.90, up 2.00 points, or 0.05%, recovering over
150 points from the session's low.
Turnover on BSE and NSE combined was 175 bln rupees, compared with
164 bln rupees in the previous session.
CNX Mid-cap index ended down 0.9%, and S&P CNX 500 fell 0.45%.
GAINERS
Banking shares recouped losses and were among top gainers on Nifty
amid talk interest rates have peaked, and Reserve Bank of India may
not hike interest rates further.
State Bank of India ended up 6% at 1,581 rupees and Punjab
National Bank gained over 3% at 505 rupees.
Tata Communications surged nearly 8% to 426 rupees, helped by
short covering. The company has entered into a pact with Bharti
Telesoft for value added services.
Shares of base metal companies gained despite fall in global metal
prices. Short covering coupled with value buying aided gains in the
stocks.
National Aluminium Co ended up 4% at 418 rupees, and Sterlite
Industries rose nearly 3% to 478 rupees.
Decline in crude oil prices lifted shares of state-run oil
marketing and automobile companies.
Bharat Petroleum Corp gained nearly 4% at 362 rupees, and Hero
Honda Motor Co was up 3% at 854 rupees.
LOSERS
ICICI Bank, down 6% at 592 rupees, was the worst hit on Nifty
after confirming its U.K. subsidiary holds 57 mln euro ($81 mln)
senior bonds of Lehman Brothers Inc.
Brokerages believe ICICI Bank will recover 50-60% of the exposure
on liquidation.
Suzlon Energy declined 5% to 201 rupees as investors continue to
shun the counter on worries about the company's growth prospects as it
faces complaints from domestic customers over technical problems with
turbines.
Shares of pharmaceuticals companies were among other major
laggards on Nifty. Ranbaxy Laboratories and Sun Pharmaceutical
Industries ended down 4% each, at 403 rupees and 1,418 rupees.
Cairn India shed 3.5% at 199 rupees as global oil prices hovered
around $93 a barrel on New York Mercantile Exchange.
KEY MARKET MOVES
* In the Nifty, 21 rose, 28 fell and 1 was unchanged.
* In the Sensex, 10 rose and 20 fell.
* On BSE, there were 886 advances and 1,752 declines
* CNX Bank Nifty: UP 2.3%, BSE Oil & Gas: Up 1.3%
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Bombay Stock Exchange : National Stock
Exchange
Sensex: 13518.80, down 12.47 pts (0.1%): Nifty: 4074.90, up 2.00 pts
(0.05%)
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B.Karthick
Research Analyst.
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