Andrew L D'Cunha
Mumbai, Oct 17: The BSE Sensex slipped into negative territory and down by 58 points in the choppy trade on Monday on mild selling on concerns about Q2 earnings amid the uncertain global economic environment. However Index managed to hold on to the psychological 17000 mark.
Nifty managed to hold above 5100 level. The BSE Sensex closed at 17,025 and the NSE Nifty dropped just 14 points, to end at 5,118. The Sensex had rallied over 5 percent last week. Reliance Industry contributed for the fall today on second quarter earnings. Reliance Industries, which has 11% weightage on Sensex, fell nearly 4% despite showing impressive performance in Q2 earnings.
The banking stocks extended last weeks gains. ICICI Bank gained 0.8% HDFC Bank added 0.7% and SBI gained 0.4% . ONGC was up 1% and Cairn India rallied 3.7%. Tata Motors up by 4% mainly on reports of its strong Sales data.
Asian stocks ended positive today on European policy makers initiative to end European debt crisis. Hong Kong’s Hang Seng Index closed with a 2% gain, while Japan’s Nikkei rose 1.5%, European markets too opened positive today on positive moves from Euro zone officials. Financial and monetary-policy officials from the Group of 20 major economies met over the weekend in France, saying European leaders would “decisively address the current challenges through a comprehensive plan” at a summit slated for Oct. 23.
India gold futures were steady on Monday afternoon following a similar trend in overseas markets, The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.10% higher Rs 26,913 per 10 grams.The rupee nudged higher comforted by a strong euro, although volatility in domestic equities and dollar demand from local oil refiners limited the gains. Festive sentiments are likely to lift ndias gold demand in the last week of October.
Andrew L D'Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd. Mangalore. Email: finadvisoryltd@yahoo.com.