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Sensex, Nifty rebound; metals shine, HDFC Infosys lead


The News International Team

03:00pm Market Update

The market rebounded in late trade led by capital goods, metals, technology stocks and HDFC. The Sensex rose 60.41 points to 29380.67 and the Nifty climbed 7 points to 8876.10.

About 1266 shares have advanced, 1544 shares declined, and 208 shares are unchanged on the BSE.

02:30pm Global Markets

A softer stance from the Federal Reserves knocked the dollar down on Thursday but failed to lift stock markets in Europe, where the looming deadline for Greece to get a new debt deal kept investors nervous.

In contrast, Japan’s shares hit a 15-year high as the minutes from the Fed’s meeting in January showed officials were concerned about hiking interest rates too soon. Export data also showed the weaker yen was helping the economy.

Investors revised their expectations for the timing of a first Fed hike and the trajectory of rates for the next couple of years. The dollar fell about 0.2 percent against a basket of currencies.

In Europe, whose barely growing economy could benefit from a weaker currency, the euro rose 0.2 percent to USD 1.1412 and the broader FTSEurofirst 300 index slipped 0.3 percent to 1,511.18 points.

The retreat from seven-year highs was accelerated by a slide in oil prices on expectations US inventories would reach record highs and a possible increase in Saudi output stoked new worries about oversupply. Brent crude futures for April fell below USD 60 a barrel, trading at USD 59.32 a barrel, down USD 1.21

Concerns about Greece, the country at the heart of the euro zone debt crisis for the past five years, also weighed. Athens is expected to seek an extension to its loan agreement with the euro zone, without which it could run out of cash in weeks. Euro zone officials said Athens had to agree to a deal by Friday, reports Reuters.

02:00pm Market Check

The market extended losses in afternoon trade due to further profit booking in FMCG, banks, oil and power stocks. The Sensex shed 174.18 points to 29146.08 and the Nifty fell 61.60 points to 8807.50.

The broader markets declined too; the BSE Midcap and Smallcap indices slipped 0.7 percent and 0.4 percent, respectively. About 1116 shares have advanced, 1646 shares declined, and 201 shares are unchanged on the Bombay Stock Exchange.

Vibhav Kapoor of IL&FS says corporate earnings have been disappointing, valuations of most companies are looking stretched; sectors like cement and FMCG look very expensive now. One should reduce weightage in economy related sectors, he adds.

European markets are under pressure today as Germany and France fell more than 0.5 percent while the Dow futures indicate start could be on the weaker side today. Greece is likely to ask for an extension to repay its euro zone loans, but a deal has not been struck yet.

JSPL is the biggest gainer today, up a whopping 23 percent after the company won back its Gare Palma 2 and 3 blocks. The management told CNBC-TV18 that they can use coal from Gare Palma for other plants as well and additional merchant power sales can happen at coal e-auction prices. Other metals stocks too saw buying interest amid ongoing e-auction. Tata Steel, Sesa Sterlite and Hindalco Industries gained 1-2 percent.

Coal secretary Anil Swaroop says power companies won’t be allowed to pass on premiums in fixed cost bids for power tariffs. He reiterates that Coal India’s output will cross 500 million tonnes this year.

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