Market Updates: Sensex, Nifty closing higher but much lower than days highs

by khalid on 16/09/2011 · 1 comment

The 2nd week of September closed on a high note despite some of the negative news crawling in. The interest rate hike and RBI’s hawkish stance in order to maintain the anti inflationary stance was expected to bring a negative impact on the markets too, however it closed with moderate gains. The initial reaction by the markets opening at the 1st hours of the day showed a downward trend but it recovered well in the later half of the day. At the closing hours the market witnessed a slight sell off in some of the FMCG and technology stocks. BSE Sensex closed with a modest increase of 57.29 points at 16,933.33. BSE Index had touched the levels of 17,122.54 which was the peak level of the day.

 Similarly the 50 stock NSE NIFTY closed 8.55 points higher at 5,084.25 points. The move by RBI has come in to control the inflation rates from touching heights by a hike in the repo rate at 8.25% with reverse repo being adjusted at 7.25%. But the CRR has been kept unchanged for the moment. As per experts this would have been the last hike in the increase of interest rates but RBI clearly indicated that this was not the case and would continue to take anti inflationary measures.

 The gainers for the day were Tata Motors and ONGC which increased by 7% and 5.6% respectively. The banking sector also increased a bit with SBI, ICICI Bank and HDFC increasing between 0.6% and 2.5%. On the update regarding the ONGC FPO the government has kept it on hold for the moment. The advance to decline ratio was 606 shares to 817 shares respectively.

 Bull the Bell says: The change in monetary policy is surely to have an impact on the markets but it seems that market was on its own mood today continuing with its 3 day rise.

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