Market bounces from day’s low, ends flat

Market bounces from day’s low, ends flat
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First Published: Mon, Sep 10 2007. 04 43 PM IST
Updated: Mon, Sep 10 2007. 04 43 PM IST
Closing
Mumbai: Discounting negative global factors, the stock markets bounced from their initial lows and ended in black on 10 September, showing strong resilience on the back of a robust economic growth and low inflation.
Global markets, however, were under pressure after a surprise drop in the US payrolls sparking fears of recession in the world’s largest economy.
Indian bourses shrugged off the impact of negative global trend as Foreign Institutional Investors (FIIs) as well as local financial institutions made heavy purchases after the market touched the intra-day low of 15,363.53.
The Bombay Stock Exchange’s 30-share index, Sensex, ended the day flat at 15,596.83 from Friday’s close of 15,590.42, a minor gain of 6.41 points.
The BSE barometer bounced by 263 points to the day’s high of 15,626.28 but failed to maintain gains due to profit booking by traders at the fag end.
Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) rebounded from early lows of 4,452.95 and closed at 4,507.85 from previous close of 4,509.50, down by 1.65 points or 0.04%.
Market players said impressive GDP growth in April-June quarter and sliding inflation number seem to have enthused foreign as well as retail investors, which were strongly optimistic about a long bull run.
FII inflows amounted to an impressive Rs 2,576 crore (including provisional number of Sept 7) during last week.
IT shares, however, suffered a setback on selling induced by the rupee’s surge to below 40 level against dollar.
Noon update
Mumbai: The market pared some of its losses on Monday, 10 September, after sliding 1.5% in early trade on lower Asian markets and fears of a slowdown in the US.
By 12:10am, the 30-share BSE Sensex was down 34.34 points at 15,556.08, after falling as low as 15,363.53. The Nifty was down 13.65 points at 4,495.85.
Traders said the recovery was supported by a belief that India’s domestic demand driven economy was better placed to weather a possible US recession than other export-led countries in Asia.
Tokyo’s Nikkei share average and Seoul’s KOSPI, each fell more than 2%.
“The weakness in the global markets might just be the perfect excuse for the (Indian) indices to pull back and consolidate gains,” JM Financial analyst Gautam Shah wrote in a note.
Morning
Mumbai: Tracking the global trend the benchmark Sensex fell by over 226 points in early morning trade on the Bombay Stock Exchange today on funds selling amid profit booking by retailers.
The 30-share index, dropped by 226.89 points at 15,363.53 points in the first five minutes of trade on heavy selling by foreign and domestic funds triggered by a fall in indices in the US and Asian stock markets.
Similarly, the wide-base National Stock Exchange index, Nifty, fell by 57.55 points at 4,452.95 points as heavy weight Reliance Industries, Infosys and ONGC traded distinctly lower.
In view of heavy selling, retail investors indulged in booking profit at declining levels.
Mumbai, 10 September India’s benchmark share index opened 1.13% lower in the morning trade after a drop in US payrolls raised fears of a recession in the world’s largest economy, sparking losses in major Asian markets.
At 9:56 am (0426 GMT), the 30-share index was down 1.17%, or 182.18 points, at 15,408.24, with 26 of the components losing ground.
The broader NSE index fell 1% to 4,464.75.
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First Published: Mon, Sep 10 2007. 04 43 PM IST
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