Markets directionless; Metal, IT lose sheen Analysis for Sep 28, 2015

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The key domestic benchmark indices remained directionless during the late noon trading session as investors opted to stay away from risky assets ahead of Reserve Bank of India"s (RBI) policy review tomorrow.

At 14:19 hours, the 30-share benchmark index, Sensex was trading at 25790.42, down by 73.08 points or by 0.28 per cent, while the NSE Nifty was at 7855.95, down by 12.55 points or by 0.16 per cent.

Investors expect that the central bank which has slashed borrowing costs by an overall 75 basis points is likely to undertake another 25 basis points reduction in the repo rate tomorrow as softening consumer inflation offers more room to the apex bank to bolster monetary easing to help prop up growth in Asia"s third biggest economy.

Amid the choppy session of trade, Sensex touched an intraday high of 25936.89 and an intraday low of 25738.54, while the NSE Nifty touched an intraday high of 7893.95 and intraday low of 7831.35.

Sentiments of traders were also under pressure with a survey by the Boston Consulting Group and apex industry chamber Confederation of Indian Industry stating that at present rate of government"s ambitious 'Make in India" initiative, its target of creating 100 million jobs and achieving 25 percent of GDP from manufacturing sector by 2022 may be difficult to meet.

Major laggards on the D-street included, Tata Motors Ltd. (Rs. 291.70,-3.94%), Sun Pharmaceutical Industries Ltd. (Rs. 864.35,-3.02%), Vedanta Ltd. (Rs. 92.70,-2.83%), Infosys Ltd. (Rs. 1111.20,-2.65%), Coal India Ltd. (Rs. 311.75,-2.15%), among others.

However, some buying interest was witnessed in stocks including Dr. Reddy's Laboratories Ltd. (Rs. 4193.40,+5.58%), Lupin Ltd. (Rs. 2059.95,+3.54%), Hindustan Unilever Ltd. (Rs. 797.50,+2.05%), State Bank of India (Rs. 242.10,+1.23%), Tata Consultancy Services Ltd. (Rs. 2601.75,+1.02%), among others.

Among the sectors, metal and IT indices emerged as top losers, shedding 1.73 per cent and 0.77 per cent, respectively.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total 2634 shares traded, 1271 shares advanced, 1252 shares declined while 111 remained unchanged.

On the global front, European counters too dampened the sentiments. CAC, DAX and FTSE all were trading lower with a cut of over half a per cent. However, Asian peers ended the day on a mixed note as investors turned cautious with data from the world's second largest economy in focus.

Story first published: Monday, September 28, 2015, 15:00 [IST]
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