Sensex recoups early losses, up marginally by 5 points

Business Economy Finance
(Last Updated On: August 29, 2016)

The benchmark Sensex recovered from its initial losses, though ruling flat with a mere gain of 5 points – helped by mild buying in auto, industrials, capital goods, metal and energy counters despite lower Asian cues.

Down beat sentiment prevailed after US Fed chief Janet Yellen indication of raising interest rates this year.

Selling was witnessed in IT, realty power, teck, FMCG and financials and healthcare sectors.

The 30-share index resumed higher at 27,827.26 and later slid to 27,698.71. It was quoting at 27,787.32 at 1100 hrs, showing a marginal gain of 5.07 points, or 0.02 per cent, from its last close.

The NSE 50-share Nifty also trading marginally up by 3.80 points or 0.02 per cent at 8,573.65.

Major gainers were, Tata Motors by 4.56 pct, Heromoto 1.44 pct, Tata Steel 1.12 pct, Realiance 1.04 pct and Bhartiartl 0.70 pct.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 341.35 crore last Friday, as per provisional data released by the stock exchanges.

Notable losers were TCS 1.90 pct, Wipro 1.61 pct, PowerGrid 1.52 pct, HDFC Bank 1.24 pct and Asian Paint 1.19 pct.

Overseas, Asian stocks trading lower after Federal Reserve Chairwoman Janet Yellen last Friday signaled the possibility of an interest-rate increase later this year.

While, US stocks closed mixed last Friday.

Sensex- Early Trade

Weakening for the third straight session, the benchmark BSE Sensex fell over 60 points in early trade on sustained selling by investors, who seem to be edgy amid rising prospects of US interest rate hike this year.

The BSE 30-share barometer declined by 60.39 points, or 0.21 per cent, to 27,721.86 with teck, realty, IT, healthare, capital goods and power were trading in negative zone, falling up to 0.90 per cent. It had lost 274.69 points in the previous two sessions.

Also, the NSE Nifty was trading down by 11.10 points, or 0.13 per cent, at 8,561.45.

Brokers said that apart from continuous selling by investors, a mixed trend at other Asian markets with US Fed chief Janet Yellen suggesting that interest rates could be raised this year also added to the weakening sentiment.

Japan’s Nikkei was up 2.24 per cent while Hong Kong’s Hang Seng fell 0.33 per cent in early trade today. The Shanghai Composite Index edged up by 0.04 per cent.

The US Dow Jones Industrial Average ended 0.29 per cent lower in Friday’s trade.

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