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Sensex range bound in choppy trade

July 9, 2009

The Sensex remained volatile in trade and ended 0.08 percent lower on fears of a fall in corporate earnings for the June quarter.

IT bellwether Infosys Technologies, will kick off the earnings season on Friday.

The rupee weakened to 49/dollar, its weakest since May 18. It was down 2.2 percent on week early in opening trade. MARKETS-INDIA

The Wholesale Price Index fell 1.55 percent, with the primary and food article indices gaining and the fuel index remained unchanged. Manufacturing, however, slipped 0.1 pct.

The 30-share sensitive index swung from an intra-day high of 13,879 to an intra-day low of 13,643 and closed 11 points lower at 13,757. The fifty-share Nifty ended 0.05 percent higher at 4080.

On the sectoral front, the BSE Consumer Durable Index dropped 1.4 percent, followed by the Capital Goods Index which ended 1.07 percent lower. However, the BSE Metal Index closed 1.53 percent higher.

FIIs bought net $158.5 million in shares and sold $3.6 million in debt.

Do you think the possibility of a slow pick-up in demand in the outsourcing sector will pull the index down further?

Comments

Today is a crucial day for sensex.Its future direction will be influenced by 1Q 2010 result announcements to be made by Infy.Traditionally,Infy starts to give out numbers before the opening bell.What is unnerving is that yesterday’s last hour of trading had a host of sellers in this scrip.

If we look at 4 top sensex shares with a maximum weightage,not less than 3 have some adverse fundamental development going against them:

Reliance:KG gas issue,MAT issue
Infosys:IT industry slowdown
L&T:Positive
ICICI:Expected rise in interest rates due to heavy borrowing programme by government

The disappearance of rains has become a worrying factor.Madhya Pradesh has declared itself as drought stricken.

Let us wait for the sensex to hit a bottom.

Posted by A.Kapoor | Report as abusive
 

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