Mid-Session: Sensex, Nifty steady on sustained fund inflows Analysis for Oct 07, 2015

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The Indian equities extended gaining streak for the sixth day on Wednesday amid sustained buying by foreign funds and retail investors in selective blue chip stocks. The market, however, lost some steam as investors resort to profit –booking after a strong rally as a cut in economic growth projections by the International Monetary Fund (IMF) sours sentiment in risky assets.

At 12:20 hours, the BSE SENSEX was trading at 26964.88, up by 32 points or by 0.12 per cent, and the NSE Nifty was quoting 12.65 points higher at 8165.55.

During the day"s trade so far, the BSE Sensex touched an intraday high of 2 27069.33 and intraday low of 26877.51, while the NSE Nifty touched high and low of 8186.85 and 8132.9, respectively.

The Washington-based lender, IMF cut its growth forecast for Asia"s third biggest economy to 7.3 per cent from 7.5 per cent in FY 2015-16 predicted earlier but stressed that India"s growth prospects remain favourable; while the IMF"s global economic growth estimate was cut to 3.1 per cent for 2015 from 3.3 per cent earlier.

On the sectoral front, realty and metal indices emerged as top gainers, adding 2.31 per cent and 1.14 per cent, respectively.

Leading the rally on the D-Street were Vedanta Ltd. (Rs. 89.50,+4.43%), Hindalco Industries Ltd. (Rs. 77.80,+4.15%), Oil And Natural Gas Corporation Ltd. (Rs. 252.95,+2.39%), Tata Motors Ltd. (Rs. 341.00,+2.25%), Bajaj Auto Ltd. (Rs. 2427.05,+2.08%), among others.

However, some selling were witnessed in blue chip stocks, such as Bharti Airtel Ltd. (Rs. 341.75,-2.11%), Wipro Ltd. (Rs. 588.05,-1.95%), Dr. Reddy's Laboratories Ltd. (Rs. 4202.35,-0.98%), Larsen & Toubro Ltd. (Rs. 1542.20,-0.73%), ICICI Bank Ltd. (Rs. 280.70,-0.73%), among others.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 2479, shares advanced were 1526 while 844 shares declined and 109 were unchanged.

Among the global peers, Asian stocks rebounded in late morning deal on Wednesday, as investors shrugged off IMF forecast, which predicted that in 2016, the world economy may expand 3.6 per cent, down from 3.8 per cent previously estimated. While markets in mainland China remained closed for holidays, Hang Seng and Japan"s Nikkei 225 advanced ahead of a Bank of Japan policy decision in which the apex lender may announce further stimulus to prop up growth in the world"s third biggest economy.

Story first published: Wednesday, October 7, 2015, 13:24 [IST]
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