BSE Sensex falls for second day, Raghuram Rajan macro event awaited

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The benchmark BSE index fell 0.25 percent while the broader NSE index ended almost flat. Reuters The benchmark BSE index fell 0.25 percent while the broader NSE index ended almost flat. Reuters
SummaryITC Ltd shares fell 1.9 percent while ICICI Bank Ltd ended 1.7 percent lower.

ICICI Bank (1.1 pc).

The gainers included Bharat Heavy Electricals Ltd (BHEL) (5.6 pc), Coal India (2.91 pc), Larsen & Toubro (L&T) (2.45 pc), Tata Power (2.22 pc) and Hero MotoCorp (2.07 pc).

Among the sectoral indices, S&P BSE-Consumer Durables moved down 1.54 pc, followed by S&P BSE-IT 1.43 pc, S&P BSE-Teck 1.12 pc and S&P BSE-FMCG 0.97 pc. S&P BSE-Realty rose 2.72 pc, S&P BSE-Power 2.47 pc, S&P BSE-CG 2.27 pc and S&P BSE-PSU 1.85 pc.

The market breath was positive as 1,356 stocks closed higher and 1,045 ended lower. Total turnover on the BSE dropped to Rs 1,856.21 crore from Rs 2,817.90 crore yesterday.

Foreign institutional investors sold a net Rs 98 crore of shares today after buying Rs 930.54 crore of stocks yesterday, as per provisional data with the stock exchanges.

Dipen Shah, Head- Private Client Group Research, Kotak Securities:

The markets were largely flat on Friday but for the week, they continued the good run which started in the previous week. Nifty / Sensex rose by about 3% with the mid-cap index outperforming the benchmarks. During the week, beaten down sectors like Realty, Capital Goods, Infra, Auto, etc rose by between 5% - 8%, reflecting the reversal of sentiment on these sectors after a long time. On the other hand, IT index ended marginally lower.

The initiatives taken by the RBI to stop the depreciation of the rupee, have had the desired impact, with the rupee appreciating significantly. This cheered the markets with rate sensitives and investment oriented sectors doing well. Moreover, the easing of tensions on the Syrian issue also brought back some risk on the table.

Going ahead, the policy decision by the Fed and its guidance, if any, on tapering of the quantitative easing measures will be closely watched. The first meeting of the RBI under the new Governor will also be an important trigger for the market, especially the decision on interest rates.

Any decision by the US Fed to taper the bond buying program, may have an impact on the global liquidity. We believe that, some tapering off is already priced in and to that extent, if the actual amount of taper matches expectation, it may not be taken negatively by the markets.

BSE Sensex down 49 points at 19,732.76 in choppy trade

(Reuters) BSE

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