Markets recoup losses; Nifty above 7850 Analysis for Sep 24, 2015

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Paring all the early losses, Indian equity benchmark indices surged higher during the late noon trading session as gains in IT majors helped offset losses in select index heavyweights and private banking majors.

At 14:12, the 30-share benchmark index, Sensex was trading at 25885.61, up by 62.62 points or by 0.24 per cent, while the NSE Nifty was at 7880.15, up by 34.2 points or by 0.44 per cent.

Sentiments of the investors got some boost on Chief Economic Adviser, Arvind Subramanian"s statement that India does not need further fiscal stimulus to revive the economy, despite record low inflation and growth seen at the lower end of an 8.1-8.5 per cent target this financial year.

In the volatile session of trade, Sensex touched an intraday high of 25949.9 and an intraday low of 25670.96, while the NSE Nifty touched an intraday high of 7894.5 and an intraday low of 7804.1.

However, traders are expected to remain cautious ahead of the expiry of the September Futures & Options (F&O) contracts due today with the short-term market trend likely to be driven by the outcome of the RBI monetary policy meet on September 29.

Gains in stocks including Lupin Ltd, Infosys Ltd, Maruti Suzuki India Ltd, Bajaj Auto Ltd, GAIL (India) Ltd counterbalanced the losses of shares such as Coal India Ltd, Oil And Natural Gas Corporation Ltd, Larsen & Toubro Ltd, Tata Steel Ltd, Hindalco Industries Ltd, among others.Among the sectors, IT and Teck indices emerged as the major gainers, trading up by 1.98 per cent and 1.66 per cent respectively.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total 2621 shares traded, 1446 shares advanced, 1060 shares declined while 115 remained unchanged.

On the global front, European counters were sluggish with all CAC, DAX and FTSE trading in red. However, Asian markets ended the day on a mixed note dragged down by economic reports portraying US factory growth as tepid and China in its worst manufacturing contraction since the global financial crisis.

Story first published: Thursday, September 24, 2015, 14:48 [IST]
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