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Sensex holds 25000 amid pressure; banks, IT, pharma drag


TheNewsInternational Team

10:15 am Market Expert: It is true that valuations of Indian equities have cooled down 10-15 percent, but the global picture remain foggy and expectation of a good return is therefore not a given, says Udayan Mukherjee of CNBC-TV18.

He does not mince words while conveying that India is not insulated from global problems and fears that retail investor patience may run thin in the days to come. He does not see Fed policy announcement changing the situation in a big way. This market will need 4-6 weeks more to understand if the downtrend is firmly established, Mukherjee said. The long term investors then can act and use the time to accumulate good quality stocks.

Mukherjee says equity markets have lagged in comparison to fixed income returns in the last few month, but it is difficult to say that the latter is a better investment proposition for the long-term. The asset allocation thus plays a very important role.

10:00 am Market Check: Equity benchmarks erased early gains following further correction in rupee. The currency hit fresh two-year low, trading at 66.76 a dollar, down 30 paise today. Banks, technology, pharma and capital goods stocks saw selling pressure.

The Sensex declined 83.28 points to 25118.62 and the Nifty fell 31.05 points to 7624 amid volatility. The broader markets underperformed benchmarks, falling 1 percent.

The market breadth remained weak as about 1138 shares have declined against 585 shares advanced on the Bombay Stock Exchange.

GAIL topped the selling list on Sensex, down 2.5 percent followed by ICICI Bank, Lupin, Axis Bank, Sun Pharma, Wipro, Dr Reddy’s Labs and Bajaj Auto with 1-1.5 percent loss. Infosys and L&T declined 0.8 percent while HDFC, ITC, Tata Motors and Cipla bucked the trend, up 0.5-1 percent.

On the global front, major Asian markets recovered with the Shanghai rising 0.9 percent. Hang Seng gained 0.2 percent and Nikkei rose 0.5 percent.


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