Sensex snaps 6-day rally; ends marginally lower
14 Sep 2009
The Sensex snapped a six-day winning streak and closed marginally lower on the back of weak global cues and profit booking in telecom, cement, realty, select metal, capital goods and private banking stocks. ONGC was also the loser.
However, buying in PSU banking, auto, select technology and oil marketing companies' shares capped the losses to major extent and helped the indices to close with modest loss.
Global cues were weak throughout the session. Asian markets ended lower; Japan's Nikkei slipped 2.3% on the back of surge in Yen against dollar, which was at 90.7/$; this hammered export related stocks. Hang Seng, Jakarta, Straits Times, Kospi and Taiwan Weighted fell 1-1.5% while Shanghai gained 1.24%. At the time of closing Indian equities, European and US index futures were trading nearly 1% lower each.
The equity benchmarks continued to see consolidation in today's trade as well. The 30-share BSE Sensex closed at 16,214.19, shed 50.11 points, after seeing an intraday low of 16,119.95. The 50-share NSE Nifty slipped 20.95 points, to settle at 4808.60, after hitting a day's low of 4786.25.
The Nifty managed to hold the 4800 mark for the fifth day in a row, after hovering around the same level. Independent Analyst, Girish Pai said the liquidity situation was going to be fairly benign for equities over the next 12-18 months and that would help emerging market equities. "I would expect the markets to be higher over the next 12 months." For near term, he said, "I think the markets are looking stretched. We have gone up almost 100% since March with a just small correction happening post budget, so there could be a correction in the offing maybe 10-15-20% correction. But beyond that I think the markets are headed higher."
The Nifty futures premium surged in the late trade and ended with 28 points premium, as per provisional data. The Nifty Open Interest put-call ratio rose to 1.46 from 1.39, as Nifty 4800 Put added 6 lakh shares in Open Interest while Nifty 4900 Call shed 6 lakh shares in Open Interest.
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