Rising for the third day,the BSE Sensex today inched up by 14 points to close at a nearly two-week high of 19,915.95 in a volatile session ahead of the September quarter earnings season – Reliance Industries (RIL) shares lead gains on index. Jet Airways (India) Ltd shares ended 0.8 percent lower on profit-taking after earlier rising as much as 7.2 percent.
Shares took support from a stronger Indian rupee which was last trading at 61.45 levels to the US dollar compared to 61.73 yesterday.
After touching the day’s high of 20,052,the BSE Sensex fell to a low of 19,833.17 before ending moderately higher by 13.88 points,or 0.07 per cent,at 19,915.95.
The gauge had gained 522 points in the last two trading sessions. For the entire week,BSE Sensex gained 188.68 points or 0.96 per cent.
“Intraday volatility was high as investors were seen cautious ahead of Q2 FY’14 results starting in coming week.
“Meanwhile the services PMI in September continued to be lower for third consecutive month,which also led to selling pressure on rallies. European markets were weak too,” said Nidhi Saraswat,Senior Research Analyst,Bonanza Portfolio.
The broad-based National Stock Exchange index Nifty also failed to hold initial gains and fell by 2.40 points,or 0.04 per cent,at 5,907.30.
Also,SX40 index,the flagship index of MCX-SX,ended at 11,852.38,down 0.89 points or 0.01 per cent.
Brokers said while government’s plan to inject funds in PSU banks to provide cheaper loans sparked off interest in interest-sensitive stocks but a mixed trend in global markets capped gains.
In 30-share BSE Sensex,15 stocks gained while other 15 ended with losses. Major gainers were Reliance Industries,Bharti Airtel,Cipla Ltd,Coal India,HDFC Bank,Hero MotoCorp,Hindalco Industries Ltd,ITC Ltd,Mahindra & Mahindra Ltd,Maruti Suzuki India and Tata Motors.
Sectorally,the BSE Realty index gained the most by rising 1.65 per cent,followed by BSE Auto index (0.94 per cent) and BSE Metal index (0.63 per cent).
Indian shares end flat on services PMI; July-Sept earnings key
(Reuters) Indian shares ended flat on Friday after a HSBC survey showing an index of activity at domestic services companies fell at the fastest pace in more than four years cut short a rally this week that had sent indexes to their highest in nearly two weeks.
The HSBC Services Purchasing Managers’ Index (PMI) ,compiled by Markit,slipped last month to its weakest since April 2009,suggesting the slowdown in Asia’s third-largest economy still has some way to run,a survey showed on Friday.
Traders were also cautious ahead of the September-quarter earnings with Infosys Ltd announcing its results on Oct. 11. They expect weak macro data points including slow growth and inflation to continue to weigh on Indian companies. Also,the U.S. government shutdown and looming debt deadline in the United States kept the dollar pinned at an eight-month low on Friday and drove world shares towards a second week of losses.
“The market is discounting most of the positives,but the risks related to earnings and U.S. debt ceiling are not yet factored,” said Dipen Shah,head of Private Client Group Research,Kotak Securities.
The benchmark BSE index rose 0.07 percent,or 13.88 points,to end at 19,915.95,marking its third consecutive day of gains,also ending 0.95 percent higher for the week.
The broader NSE index fell 0.04 percent,or 2.40 points,to end at 5,907.30,while ending 1.3 percent higher for the week.
Tata Motors Ltd shares gained 1.2 percent after Deutsche Bank upgraded the stock to “buy” from “neutral” and raised its target price to 400 rupees from 275,citing an improving global economy.
Software services exporters gained on bets for an improving business outlook in key markets. Tata Consultancy Services Ltd rose 0.4 percent and Tech Mahindra Ltd ended 2 percent higher.
Tata Communications Ltd rose 2.4 percent,gaining for the third day,on a potential takeover of its unit Neotel by South Africa’s Vodacom Group.
Glenmark Pharmaceuticals Ltd rose 3.2 percent,marking its eighth day of gains after a slew of key drug approvals and its inclusion in the National Stock Exchange’s derivatives market.
Jet Airways (India) Ltd shares ended 0.8 percent lower on profit-taking after earlier rising as much as 7.2 percent,after India’s cabinet approved on Thursday a $330 million deal by Abu Dhabi’s Etihad Airways to buy a stake in the company.
Among other stocks that fell,Infosys lost 0.7 percent on caution ahead of its July-September earnings later next week.
Hindustan Unilever Ltd fell 0.5 percent,marking its third day of declines,after its parent company Unilever warned that a slowdown in its emerging markets accelerated in the third quarter.