Sensex loses 54 points but remains resilient

Sensex loses 54 points but remains resilient

Mumbai: The stock markets ran out of steam after a 102-point initial rally and ended 54.06 points lower as investors turned cautious ahead of the UPA-Left meeting on the Indo-US nuclear deal.

The market, however, continued to be resilient due to the strong growth in economy, which analysts feel, will not be affected by political instability caused by the deal.

Rising to an intra-day high of 15,698.98 points at the outset, the Bombay Stock Exchange (BSE) 30-share Sensex later moved downward to end the day at 15,542.77, down 0.35% from 10 September’s close of 15,596.83 points.

Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) fell back from the day’s high of 4,538.60 points and closed at 4,497.05, a net fall of 10.80 points or 0.24 per cent from previous close of 4,507.85.

Meanwhile, ahead of the first UPA-Left committee on the Indo-US nuclear deal, Congress members of the panel held discussions to decide their strategy for the crucial talks.

The Left has toughened its stance on the issue amid indications that the government might operationalise the deal.

Foreign Institutional Investors (FIIs) were seen making selective purchases but some hedge funds booked profits at the current levels, market players said.

Investors generally ignored volatile activity in global markets and preferred to enlarge their positions following strong economic fundamentals and robust corporate earnings.

Reacting to the rupee’s appreciation against dollar, IT shares continued to move lower on fresh selling pressure.

Meanwhile, Asian indices recovered smartly following a positive trend on Wall Street Monday.