Home / Business / Money / Sensex, Nifty erase early gains; DLF tanks 19%, RIL gains

Sensex, Nifty erase early gains; DLF tanks 19%, RIL gains

09:23

The News International Team

Equity benchmarks gained half a percent in opening trade led by easing CPI inflation in September and better-than-expected numbers from Reliance Industries in Q2, but could not sustain those gains.

The Sensex fell 45.99 points to 26338.08 and the Nifty declined 19.05 points to 7865.20 weighed down by technology, metals, private banking and financials stocks.

About 781 shares have advanced, 510 shares declined, and 39 shares are unchanged on the Bombay Stock Exchange.

DLF tanked 19 percent after market regulator SEBI barred company and its six executives from accessing capital markets for 3 years.

Shares of TCS, ITC, Infosys, Tata Motors, ONGC and HDFC declined 0.3-1 percent. Metals stocks like Tata Steel, Hindalco Industries and Sesa Sterlite fell 1-1.6 percent.

However, Bajaj Auto gained 1.5 percent ahead of Q2 earnings. Axis Bank, Coal India, Bharti Airtel and IndusInd Bank rose 1.3-1.6 percent.

Reliance Industries gained a percent after its second quarter net profit came in at Rs 5972 crore, beating street estimates, led by higher-than-expected USD 8.30 per barrel gross refining margins.

Meanwhile, the consumer price index (CPI) for September fell to all-time low of 6.46 percent versus expectations of 7.2 percent. Meanwhile, in key data today, the wholesale price index (WPI) for September is expected to soften further to 3.1 percent.

The Indian rupee gained in the opening trade. It rose 15 paise to 60.93 per dollar versus previous day’s closing value of 61.08 a dollar.

Ashutosh Raina of HDFC Bank said the global growth concerns are back to haunt the markets, resulting in re-emergence of risk-off sentiment. “The WPI inflation number, declared after market hours yesterday, should cheer the markets,” he added.

He expects the currency to trade in a 60.50-61.50/dollar range, with an appreciating bias.”

The dollar fell against a basket of major currencies on persisting concerns about global economic growth and worries that the Federal Reserve may delay its first interest rate hike.

On the global front, markets were in the red with the US markets slumping and the S&P 500 falling below its average from the past 200 days. Meanwhile, the CBOE VIX jumped 16 percent, the highest level since June 2012. Nikkei that opened after a day’s holiday tanked 2 percent on a strong yen.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...