Post Session- Sensex turns the tables, ends higher despite weak global cues Analysis for Jun 08, 2012

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Erasing earlier losses and shrugging off weak global cues, the key domestic benchmarks sprung a surprise to close on a positive note today, with the Sensex ending at the highest level in one month.

The benchmarks, which spent the majority part of the day in the negative terrain, launched a smart recovery in late trade on robust buying in Capital Goods and Realty stocks as market participants hoped that the RBI may deliver another rate cut, which may bolster the two sectors. However, the central bank on Friday hit back at criticism that high interest rates were responsible for India"s marked growth slippage. While not ruling out a rate cut, the RBI maintained that it will press the easing button if inflation rate comes down.

The Sensex fell earlier in the day along with other Asian markets after the Federal Reserve offered no hints of further monetary stimulus to bolster US economic growth amid the deepening debt turmoil in Europe

The BSE SENSEX closed at 16,718.87, up by 69.82 points or by 0.42 per cent and then NSE Nifty ended at 5,068.35, up by 18.7 points or by 0.37 per cent.

The BSE Sensex touched intraday high of 16,767.77 and intraday low of 16,485.02 The NSE Nifty touched intraday high of 5,084.45 and intraday low of 4,994.8.

Meanwhile, the BSE MIDCAP closed at 5,988.21, up by 12.98 points or by 0.22 per cent while the BSE SMLCAP ended at 6,326.14, up by 12.51 points or by 0.2 per cent.

The benchmarks, which witnessed a gap down opening today amid weak global cues, extended losses as a falling rupee and weak cues from Asian and European markets dampened domestic sentiment. However, the benchmarks rebounded in late trade amid a pickup in buying in capital goods and realty stocks.

On the Sectoral front, Capital Goods and Realty gained 1.78 per cent and 1.40 per cent, respectively.

Out the of 30 Sensex stocks, there were 29 advances and 9 declines. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3547, shares advanced were 1388 while 1408 shares declined and 751 were unchanged.

The top gainers of the BSE Sensex pack were Sterlite Industries (India) Ltd. (Rs. 100.60,+3.50%), GAIL (India) Ltd. (Rs. 331.70,+3.06%), Larsen & Toubro Ltd. (Rs. 1309.05,+2.53%), Bharat Heavy Electricals Ltd. (Rs. 221.25,+1.58%), Hindustan Unilever Ltd. (Rs. 428.35,+1.36%), among others.

Among the Asian stock markets, Shanghai Composite ended down 0.51 per cent, Hang Seng closed down 0.94 per cent and Nikkei 225 shed 2.09 per cent.

Among the European markets, CAC 40 was down 1.02 per cent, DAX was down 0.88 per cent and FTSE 100 was trading lower by 0.89 per cent at 16:53 PM IST.

Story first published: Friday, June 8, 2012, 18:20 [IST]
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