CLOSING
SESSION SUBDUED
Nifty
8525 -31
Nifty
traded in a zigzag manner and in the negative almost for the entire
day and closed with a loss of about 0.30%, Second day of
successive negative close. However, Short term trend continues to
remain positive and stoploss may be raised to
8500 (on close basis). Nifty spot is expected
to encounter resistance at 8565,, 8600 and find support at 8485, 8450
for Wednesday. While Global cues and Funds
flow are expected to broadly guide the market movement, based
on the present market position, market is expected to experience
volatile / zigzag movements
with better midsession. Closing session could remain subdued.
SENSEX
FELL BY 115 POINTS
Markets
today fell for the second straight session with benchmark Sensex
slipping 115.61 points to close at 28,444.01 on profit-booking in
select bluechips after RBI held rates for the fifth time in a row and
losses in IT shares after rupee gained strength versus US dollar.
After a lower opening, the BSE Sensex tried to recover and logged a
high of 28,576.39 on RBI Governor Raghuram Rajan opening the door for
a rate cut early next year but the gains proved to be fleeting. The
Sensex later witnessed choppy trade as every rise met with selling.
It settled at 28,444.01, a fall of 115.61 points or 0.40 per cent.
Yesterday, it had slipped by 134.37 points. Similarly, the broader
50-issue Nifty of the NSE moved down further by 31.20 points, or 0.36
per cent, to 8,524.70. "As anticipated, RBI kept the policy rate
unchanged as it believed that a change in stance towards easing would
be premature at the juncture...we believe RBI will refrain from
cutting policy rates before the next budget in Feb 2015," said
Dhananjay Sinha, Head-Institutional Research, Emkay Global. Over half
of the 30 Sensex constituents ended with losses led by GAIL (down
2.85 per cent), M&M (2.36 per cent), HDFC (1.51 per cent) and
Hero MotoCorp (1.48 per cent). Banking shares, like ICICI Bank and
Axis Bank, closed up. Rupee, which had breached 62-mark against
dollar in previous sessions, today strengthened to 61.87 levels. This
put pressure of shares IT companies, including TCS and Infosys, which
earn most of their sales in the US currency. Besides IT and auto
shares, oil & gas shares also attracted profit selling after
excise duty on petrol was hiked by Rs 2.25 per litre and by Re 1 a
litre on diesel but retail pump rates won't rise as oil firms have
decided to absorb the duty change for the time being. Despite fall in
Sensex and Nifty, total market breadth was slightly better on good
demand from retail investors. The BSE-Midcap and BSE Smallcap indices
outperformed the Sensex as they gained 0.91 per cent and 0.55 per
cent respectively. The global mood was positive as most Asian and
European indices were in the green. This gave some support to Indian
markets, traders said. Overseas investors had sold shares worth Rs
12.36 crore yesterday, as per provisional data.
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