Tuesday, June 8, 2010

Sensex, Nifty rangebound; FMCG stocks slide

Indian markets opened flat for a second consecutive day today and continued to be range bound. The Sensex and Nifty were up 0.15 per cent but lacked any conviction in the absence of strong global or domestic cues.

The Sensex was trading at 16,638 while the Nifty kept flirting with the psychological 5,000 mark though still trading below its 200 day moving average at 11.15 am.

Among the sectoral indices, FMCG led the losses. The index was down 1.88 per cent after leading the gains on Tuesday. ITC slid 3.45 per cent. Oil and gas made came back strongly after losing ground on Tuesday. ONGC gained 2.27 per cent. The broader markets were in the green too with the BSE mid cap up 0.60 per cent and the small cap gaining 0.53 per cent. The breadth of the market was positive with 62 per cent stocks advancing on the BSE.

Among the buzzing stocks, Bajaj Finserv rose 5.97 per cent on reports that Warren Buffet was looking to buy a stake in the company. Bharti gained 4.91 per cent.
The company announced that it had completed the acquisition of Zain's African business on Tuesday. However, the stock's rating was downgraded to BB+ by S&P today.

ACC, M&M and DLF rose on the Sensex while Tata Power, Tata Motors and Wipro were the main losers.

Asian stock markets were weak as Europe's debt crisis stunted enthusiasm despite the Dow ending higher after two sessions of extensive losses.

Japan's benchmark Nikkei 225 was down 133 points, or 1.40 per cent, to 9,403. South Korea's Kospi was down 0.59 per cent to 1,641.

The Chinese markets were lower with the Shanghai Composite down 0.22 per cent and the Shenzen 300 lower by 0.15 per cent.

The Dow Jones rose 123points, or 1.3 per cent, to 9,939 after Federal Reserve Chairman Ben Bernanke's reassuring comments on the U.S. economic recovery.

Source http://beta.profit.ndtv.com/news/show/sensex-nifty-rangebound-fmcg-stocks-slide-72615

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