Sensex up 30 pts; investors fret over Re

Sensex closed with a meagre gain of 30 points amid hectic selling in the last hour.

Written by Agencies | Mumbai | Published:May 21, 2012 5:26 pm

With investors pressing panic button in the last hour of trade on rupee plunging to record lows,the Sensex lost initial momentum closing the day with a meagre 31 points gain.

Earlier in the day,the BSE benchmark today went up by 145.64 points to the day’s high of 16,298.39. It finally closed at 16,183.26,a gain of 30.51 points.

Before the gains were wiped out,the sentiment had improved following State Bank of India reporting better-than-expected earnings. SBI on Friday posted net profit of Rs 4,050.27 crore in the fourth quarter ended March 2012 against Rs 20.88 crore recorded in Q4 of the previous fiscal.

“A sudden bout of selling in last hour of trading session led markets to surrender almost all gains… the decline in rupee made the sentiments jittery. Markets managed to close in a positive territory,albeit with slight gains,” said Shanu Goel,Senior Research Analyst,Bonanza Portfolio.

The rupee was threatening to breach 55-level as stocks markets were wrapping up the day’s trade. After stock market hours,the rupee breached the psychological 55 level.

Tata Power with a gain of 4.5 per cent led Sensex gainers today,followed by SBI (3.37 pc),Maruti (2.99 pc) and Bhel (2.51 pc).

Despite a weak rupee,which boosts exporters’ margins,IT stocks in Sensex like Wipro and Infosys were the worst-hit with losses of nearly 2 per cent each. TCS also closed 0.2 per cent down.

Amongst sectoral indices,BSE-IT was the worst performer with a loss of 1.19 per cent. It was followed by BSE-FMCG (1.17 pc) and BSE-TECk (1 pc).

On the other hand,BSE-Capital Goods (1.96 pc),BSE-Realty (1.90 pc) and BSE-Power (1.27 pc) lent support to the stock market today.

The NSE 50-share Nifty today moved up by 14.60 points of 0.30 per cent to close at 4,906.05. Earlier in the day,most Asian stocks rose after G8 leaders over the weekend backed keeping Greece in the Eurozone and vowed to take all steps necessary to combat financial turmoil.

Key benchmark indices in Japan,China,Taiwan,Singapore and South Korea were up by 0.26 per cent to 0.94 per cent while indices in Hong Kong declined by 0.16 per cent.

European stocks were trading mixed in their early trade on speculation European leaders will come up with a strategy to ease the region’s debt crisis when they meet on Wednesday.

Key indices in France and Germany moved up by 0.20 per cent and 0.67 per cent respectively while London declined by 0.89 per cent.

Analysts feel Indian markets may pull back from current levels soon.

“We expect markets to pull back from the current levels and remain range bound thereafter in the near term with a positive bias,” said Sharmila Joshi,Head Equity,Fairwealth Securities.

Other major Sensex gainers Coal India (2.41 pc),Larsen (2.35 pc),Hindalco (2.13 pc),Sun Pharma (1.93 pc),DLF (1.75 pc),HDFC (1.00 pc) and Reliance Industries (0.99 pc).

Among Sensex losers,Wipro fell by 2.21 per cent followed by Infosys (1.71 pc),ITC (1.65 pc),Sterlite Industries (1.19 pc),Cipla (1.00 pc) and HUL (0.96 pc).

Among the sectoral indices the BSE-Capital Goods shot up by 1.96 per cent,followed by BSE-Realty (1.90 pc),BSE-Power (1.27 pc),BSE-Bankex (1.08 pc) and BSE-PSU (0.64 pc).

However,BSE-IT fell by 1.19 per cent,followed by BSE-FMCG (1.17 pc) and BSE-TECk (1.00 pc).

The market breadth turned positive as 1,643 stocks ended with gains while 1,027 stocks finished with losses.

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