Thursday turned out to be an absolute choppy day which ended on a flat
note. The index heavyweight Reliance industries which announced a 1:1
bonus issue on Wednesday surged in the early trades however as the day
progressed the stock ended almost flat. The move which was meant to
boost up investor confidence failed to inspire the bulls. IT stocks were
under the pressure as the Indian Rupee gained 12% since March. On the
other hand the telecom stocks continue to remain under the bear attack
on account of per second payment. Technically, it is the second straight
trading session where the NSE Nifty ended below the 13DMA. However, a positive sign is that the index has managed to close above the 5,000 levels. Finally, the BSE Sensex gained 37 points at 16,843 after touching a high of 16,998 and a low of 16,775. The index opened at 16,908
against the previous close of 16,806. The NSE Nifty was up 16 points to shut shop at 5,002.
Telecom stocks again took it on the chin and IT stocks had a bad outing on the back of a strong rupee. Bharti and Reliance Communications lost between 6-7%, while TCS and Infosys shed 3- 4% each on the NSE. Infosys weakened almost 2% ahead of its results tomorrow. However, stocks such as Siemens, Tata Motors and Reliance Infrastructure did well, gaining between 4-5% on the NSE. The market breadth was negative - out of 2,868 stocks traded on the BSE, 1,512 declined, 1,246 advanced.
The wholesale price-based inflation was at 0.83 per cent in the previous week compared to 12.08 per cent during the corresponding week a year ago. Food prices are likely to go up in the coming weeks as floods in the southern states of Karnataka and Andhra Pradesh have destroyed crops,
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