Post Session-Sensex treads water as Fed eyed Analysis for Sep 16, 2014

Posted By: Religare
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The key domestic benchmarks sank today tracking a bearish trend in Asian and European markets as investors across the globe were jittery ahead of the start of the US Federal Reserve"s two day monetary policy meet beginning later on Tuesday amid speculation that the world"s top central bank may bring forward its guidance to raise interest rates amid an improving US economy, curbing appetite for risky assets. The Fed is likely to trim its monthly bond buying plan by another USD 10 billion while it may offer cues over the timing to tighten monetary policy for the first time since 2008. Any indications of earlier than expected monetary tightening may lead to capital outflows from emerging markets such as India. A referendum for Scottish independence from the UK on Thursday also made global investors wary. The Sensex closed lower for a second day on the trot, shedding over 320 points driven by losses in realty and power stocks.

Asian stocks sank after China"s FDI slumped to a four-year low, clouding the outlook for the world"s second biggest economy. China"s Shanghai Composite tumbled while Hang Seng booked heavy losses as overseas investment in China fell to USD 7.2 billion in August 2014, down 14 per cent from the year ago month. Japan"s Nikkei 225 retreated amid caution ahead of Fed meet.

The BSE SENSEX closed at 26,492.51, down by 324.05 points or by 1.21 per cent and the NSE Nifty ended at 7,932.9, down by 109.1 points or by 1.36 per cent.

The BSE Sensex touched intraday high of 26,861.29 and intraday low of 26,464.03 The NSE Nifty touched intraday high of 8,044.9 and intraday low of 7,925.15.

Meanwhile, the BSE MIDCAP was at 9,659.31, down by 341.55 points or by 3.42 per cent, while the BSE SMLCAP ended at 10,796.31, down by 449.21 points or by 3.99 per cent.

On the Sectoral front, Realty and Power shed 3.42 per cent and 3.26 per cent, respectively.

The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3274, shares advanced were 866 while 2305 shares declined and 103 were unchanged.

The top losers of the BSE Sensex pack were Tata Power Company Ltd. (Rs. 83.70,-5.85%), Tata Steel Ltd. (Rs. 490.05,-3.45%), Axis Bank Ltd. (Rs. 398.85,-3.14%), Oil And Natural Gas Corporation Ltd. (Rs. 408.75,-2.98%), Larsen & Toubro Ltd. (Rs. 1516.90,-2.79%), among others.

Story first published: Tuesday, September 16, 2014, 16:48 [IST]
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