A mixed trend on Asian bourses amid investors awaiting cues on whether the Federal Reserve would raise United States interest rates this year kept investors edgy. Market participants were also jittery as the speech by Fed chair Janet Yellen at an annual summer gathering in Jackson Hole was awaited, for indications of how policymakers view the interest rates outlook and ahead of the expiry of the derivative contracts on Thursday.
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Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said, “The Market fell, rupee weakened and bond yield rose amid the announcement of the new RBI Governor. On the other hand, global market is shifting its focus to the possibility of a rate hike in the USA by December 2016, which will cast a shadow on the domestic market”. Sensex opened 27.02 points up at 28012.56, while Nifty opened 0.80 points, or 0.01 per cent, down at 8,628.35.
The gauge had lost 46.44 points in the previous session on Friday after investors locked-in gains.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) slipped by 9.20 points, or 0.11 per cent to 8,619.95 points.
Later in the week, investors may remain cautious to bet in the domestic market as foreign institutional investors (FIIs) that have been strengthening the markets as net buyers, sold cash shares around Rs 300 crore on Monday.
In contrast, Hind Unilever, ITC, HDFC Ltd, Coal India, Cipla, HDFC Bank, Bharti Airtel, Power Grid, L&T, GAIL and Dr Reddy’s finished higher by up to 1.94 percent and limited the fall.
Telecom major Idea Cellular soared 7.7 percent on a CNBC TV 18 report that it is exploring options and is in talks for a possible merger with Vodafone.
Shares of Tata Power plunged 3.24% after the company’s consolidated net profit tumbled by 76% to Rs 72.49 crore for the quarter ended June 30, 2016. The broader indices made a negative closing; the BSE Mid cap index ended down by 0.28%, while Small cap index was down by 0.07%.
Among the sectoral indices, IT rose by 1.82 pct, teck 1.78 pct and bankex 0.11 pct, while oil&gas fell 1.48 pct followed by power by 1.11 pct.
In Asian markets, Japan’s Nikkei fell 0.22 per cent while Hong Kong’s Hang Seng shed 0.37 per cent in early trade today.
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Indian shares erased early losses to end marginally higher on Tuesday after European stocks climbed in early trade, buoyed by data showing that the euro area remained on a steady growth path in the third quarter, with no signs of the recovery being derailed by Brexit uncertainty. Key indices from the continent, like in London’s FTSE, France and Germany and the United Kingdom, were higher by up to 0.77 per cent.
