Andrew L Dcunha
Mumbai, Sep 7: Positive global cues and sustained capital inflows drove the benchmark Sensex up by 202 points on Wednesday. Sensex touched a high of 17,157. It ended near that level at 17,065. Nifty ended up 60 points at 5,124. Stocks from the banking, metal, capital goods, power and realty space are leading the pack of gainers. BSE Realty Index was up 3.34 per cent, BSE Power Index moved 2.43 per cent higher and BSE Bankex advanced 2.14 per cent.
Market heavyweight, Reliance, continued to shine after BP Plc said it is confident of of raising natural gas production from its eastern offshore KG-D6 block in two years time. The stock was the biggest contributor the Sensex's upmove and added 1.2% at Rs 831. Going forward, the markets may take cues from the US President Barrack Obama's speech to the Congress, due on Thursday, highlighting ways to boost hiring. Federal Reserve chairman Ben Bernanke is scheduled to discuss the nation's economic outlook on the same day, in Minnesota
Global stocks jumped after the recent steep decline. Nikkei gained 2% to 8,763 on short covering after three consecutive days of losses. Jakarta and Taiwan markets soared 2.4% each. In Europe stock markets rallied Wednesday, as investors sought out bargains among stocks beaten down by three days of losses. CAC has surged 2% to 3,029. DAX gained 2.4% to 5,319.
Gold Declined
Gold prices today declined by Rs 643 to Rs 27,326 per 10 grams from the record levels due to fresh selling by speculators at existing high levels in tandem with a weak trend in the Asian region. Gold futures climbed to an all-time high of Rs 29,091 per 10 grams yesterday. A bounce back in equity markets led to diversion of investor funds from bullion and further influenced the trading sentiment to some extent, dealers said. On the Multi Commodity Exchange, October gold lost Rs 643, or 2.30%, to Rs 27,326 per 10 grams. A weak trend in the Asian region as a rebound in equities trimmed demand of investors seeking to protect their wealth against declining currencies and economic turmoil, mainly pulled down gold futures prices.
Andrew L D Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd. Mangalore. Email: finadvisoryltd@yahoo.com
