New Delhi: Markets made recovery from the day’s low near closing on Wednesday but were still trading weak and ended flat with a negative bias on some renewed buying activity as government announced reviewed FDI guidelines.
According to new norms approved by Cabinet Committee on Economic Affairs foreign investment through an Indian company would not be calculated as indirect foreign investment in case of Indian companies owned completely by resident Indians. This will allow overseas investors to raise their stakes in Indian firms.
The Bombay Stock Exchange benchmark Sensex began the day in red, continuing to trade lower by 1% through most of the day as sell-offs triggered by unsatisfactory US $800 billion stimulus plan continued. Investor expectations worldwide were hurt with the unclear strategy of the economic rescue plan passed by Senate on Tuesday night.
The 30-share BSE index ended 28.93 points lower at 9,618.54 and the 50-share NSE Nifty lost merely 8.80 points to close at 2,925.70.
The selling pressure continued among the metal, oil and gas, IT, capital goods and PSU stocks. However Auto, consumer durables, power, FMCG, technology and realty stocks gained after low trading.
There are also expectations from the government to announce measures to boost economic growth in the upcoming interim budget on 16 February.
Top gainers on the BSE index were Maruti Suzuki by 4% at Rs632.55, ACC Ltd by 2.64% to Rs558.15, Jaiprakash Associates by 2.47% to Rs76.70, Tata Power by 1.81% to Rs807.95 and Bharti Airtel by 1.72% to Rs674.20.
Several firms of Tata Group were battered on the index as declaration of pledged shares company’s several firms Tata Communications, Tata Steel, Indian Hotels, Tata Sons and Tata Coffee was made. Tata Steel slipped by 3.38% to Rs 190.30, Tata Motors by 2.09% to Rs135.95 and TCS by 1.90% to Rs221.95.
Other losers from the BSE pack were Ranbaxy laboratories by 5% to Rs221.20, Grasim Industries Ltd by 4.07% to Rs1,359.75, Reliance Infra by 3.73% to Rs541.50, Sun Pharmaceuticals by 1.94% to Rs1,096.35 and Wipro by 1.60% to Rs221.95.
Meanwhile, European shares opened slightly lower on vague US stimulus plan, on a similar disappointment note Asian markets dropped as Hing Kong’s Hang Seng closed 2.5% down. Japan’s Nikkei index was closed today on account of a holiday.