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Markets end flat, all eyes on US Fed Reserve

Markets end flat, all eyes on US Fed Reserve
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First Published: Tue, Mar 18 2008. 05 41 PM IST
Updated: Tue, Mar 18 2008. 05 41 PM IST
Mumbai: The Bombay Stock Exchange benchmark Sensex on Tuesday ended almost flat on small bouts of trading amidst speculation that US Federal Reserve may announce yet another interest rate cut on Wednesday.
Marketmen said investors preferred to wait for Fed’s decision before indulging in selling or buying.
The 30-share Sensex, which recorded the second biggest fall of 951 points in previous day’s trading, gained a moderate 23.97 points at 14,833.46. The key index touched day’s low of 14,677.24 and a high of 15,169.61 points.
Analysts said Fed’s decision will have a direct bearing on market sentiments and it could either lift the markets up or down in near term.
The wide-based National Stock Exchange index Nifty rose by 29.90 points at 4,533.00. It touched the days low of 4,468.55 and a high of 4,617.95 points.
Trading volumes turned weak as funds refrained from enlarging their positions ahead of the crucial Fed meeting, marketmen said.
Trading was confined to select sectors like capital goods, realty, oils and gas, metals, bank and consumer durables.
While capital goods index surged by 227.57 points at 12,933.88 and realty index by 136.47 at 7243.00, the metal index dropped by 284.74 points at 13,440.78, bank index by 75.19 points at 7493.97 and oils and gas index by 90.26 points at 9711.60.
Smallcap index lost 157.03 points at 7365.20 and midcap index by 90.44 points at 6033.91.
Late morning
The stock markets showed signs of stability at lower levels as the Sensex recovered by 109 points in late morning deals after yesterday’s heavy sell-off, despite weakness in Asian indices.
Taking a cue from weak Asian markets, the Bombay Stock Exchange 30-share barometer opened lower at 14,725 and dropped to 14,677.24 before recovering to quote at 14,918.05 at 10.30 am, showing a rise of 108.56 points over yesterday’s close.
The Sensex had tanked by a whopping 951 points yesterday, registering its second biggest fall in absolute term.
The broad-based S&P CNX Nifty of the National Stock Exchange also recouped by 53.65 points to 4,556.75 at 10.30 am from previous close of 4,503.10.
Dealers attributed recovery to hectic short-coverings by operators ahead of the long weekend holidays. The market will remain closed on Thursday and Friday on account of Id-E-Milad and Good Friday respectively.
According to market participants, the recovery might proved to be short-lived due only to short covering and there was not much buying interest as global drawback remained as it is and expected more selling in later part of the day.
Capital goods, refinery and power segments attracted good buying support.
Mumbai: The Bombay Stock Exchange benchmark Sensex remained volatile and gained nearly 42 points in early trade today as small investors brought stocks available at existing low levels.
The 30-share index, which lost 951 points on 17 March, recovered by 42.17 points to 14,852.66 in the first ten minutes of trade.
Similarly, the wide-based National Stock Exchange index, Nifty, also rose by 42.20 points to 4,545.30 points as investors expect more interest rate cut by the US Federal Reserve on its meeting this evening.
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First Published: Tue, Mar 18 2008. 05 41 PM IST
More Topics: Stocks | Open | Sensex | Nifty | Markets |