You are here: Home » Markets » News
Business Standard

Markets end volatile session in green

SI Reporter  |  Mumbai 

ended on a positive note but volatility ruled the roost on expectations of a rate hike from credit policy next week. Sensex flip flopped in a 300 points range, the benchmark index opened at 19,986 and touched a low of 19,768 and a high of 20,080. The Sensex closed at 20,032, up 91 points, the Nifty closed up 30 points at 6018.

Asian were buffeted on earnings concerns in Tokyo and Seoul, while AIG, an arm of American International Group Inc continued its decent run after the sparkling debut in Hong Kong.

Investors across the globe were nervous on the amount of quantitative easing."The quantum and size of quantitative easing is still not clear, but if the US Federal Reserve will buy bonds worth a trillion dollars, emerging like will see huge fund inflows, " Tejas Doshi, Vice President - Research, Sushil Finance said.

Japan's Nikkei Share Average fell 1.7%, South Korea's Kospi Composite declined 1.3%, Hong Kong's Hang Seng Index dipped down 1.3% and China's Shanghai Composite fell 0.6% European bourses were also trading mixed on anticipating of US third quarter GDP data.

In India, investors stayed to the sidelines for the most part of the day. Technical Analyst, Devangshu Dutta said, "Nifty has seen a recovery till around 6025 – likely to hit resistance there. Expect the index to trage in a range of 5950-6025."

Recovery in the last leg of trade was led by ICICI Bank. The largest private sector lender zoomed 7% contributing 104 puts to the Sensex after it reported better-than-expected results, net profit surged 18.8%. From the banking space, Axis Bank rose 1.4%, followed by Canara and Federal Bank, up 0.5% and 0.3% each.


Rate sensitive sectors were jittery on expecations of a moderate rate hike."Looking at the inflation scenario and considering that RBI has been quite proactive in managing the same, expect atleast 25 bps rate hike in the upcoming credit policy, and possibly about 50 bps rate hike over the next three – six months," Doshi said. Realty index was down over 1%. Peninsula Land slipped 3.5%, Indiabulls Real Estate dropped 3.2% and DB Realty fell 3.2%.

Marketmen continue to bet on the India growth story. "If the investors have one to two year view, companies in sectors like auto ancillary, PSU banks, consumer durables, fertilizer, agriculture, pharmaceutical, especially the domestic branded generic business businesses could be looked at,"Doshi said.

On the Sensex, Reliance Industries surged 1.2% on expectations of a strong profit growth in the September quarter, ITC rose 2.3% and Maruti Suzuki zoomed 1.9%. Hindalco, down 2.8%, Tata Motors, down 2.6% and Tata  Steel fell 2.4% were the top losers on the Benchmark.

Broader markets ended in the red, midcap fell 0.9% and smallcap fell 1.5%. Market breadth was negative, 865 stocks advanced for 2137 declining stocks.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 29 2010. 15:33 IST
RECOMMENDED FOR YOU
.