Sensex ends flat; Bharti, RComm dip 6 per cent, Tata Motors up 5 per cent
08 Oct 2009
The Nifty closed marginally higher and managed to stay above the 5,000 mark. The indices witnessed volatility in today's trade as well. Oil & gas, FMCG, power, metal and banking supported the markets while telecom and technology stocks remained under pressure for the fourth day in a row. The Indian markets underperformed the global markets for the second consecutive day.
The markets remained positive for the major part of the day. However, in the last few minutes profit booking in heavyweight Reliance Industries exerted pressure on the Nifty. The share closed up nearly 1%. It had opened with 3.5% gain on the back of news of 1:1 bonus issue, which was announced on Wednesday.
Technology stocks witnessed selling pressure throughout the session ahead of Infosys Q2 numbers tomorrow and on account of rupee appreciation. TCS and HCL Tech declined over 3.2%. Infosys, Wipro and Tech Mahindra were down 1.3-1.8%.
Pashupati Advani of Advani OTC Dealers said IT pack may go down by 3-5%. "Given the volatility of the rupee, most of them have probably hedged their positions at Rs 48 and Rs 49/$. So at 45 and 46 they are sort of saying, ''Ouch! Why did we do that?'' I personally feel that the rupee is in this range between 45 and about 48-49 and the margins are suffering. So I guess the numbers that you have come up with as your expectations are probably reasonable and that's probably going to make the IT pack go down another may be 3-5%."
Short positions were seen in the telecom space. Bharti Airtel tumbled 6.6% and was down 23% in four days with loss of Rs 40,000 crore in market cap. It added 24% in open interest. Reliance Communication slipped 6% and added 27% in open interest. Idea Cellular declined 2.27%.
The 30-share BSE Sensex wiped out 155 points from the day's high of 16,998.52, before closing at 16,843.54, up just 36.88 points over previous close. The 50-share NSE Nifty gained just 16.50 points at 5,002.25, after seeing a drop of 41 points from the day's high of 5043.05. The Nifty 5,100 and 5,000 Calls shed significant open interest.
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