The Telegraph
Since 1st March, 1999
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Sensex dazzle dims at end

Mumbai/Calcutta, Oct. 21: After a smashing Samvat 2062, a very modest beginning for Samvat 2063. The wish of 13000 on the auspicious day was not granted.

Cooling off after the initial momentum, the sensex registered a gain of 27.42 points or 0.22 per cent during Muhurat trading to mark the beginning of Samvat 2063.

The 30-share bellwether index opened with a surge of 76 points at 12785.78 against Friday’s close of 12709.40. It hit the day’s high of 12837.28.

However, lacklustre response to the mega Tata-Corus deal and some profit taking towards the close saw the sensex touch a low of 12715, down 122 points from the day’s high. It finally settled at 12736.82.

On the National Stock Exchange, the Nifty also ended flat at 3677, marginally up from Friday’s close of 3673.85.

Tata Steel was the highest gainer and spurted 1.62 per cent to close at Rs 516.10 on the BSE.

According to market trackers, there are actually no major movement during Muhurat sessions.

“Muhurat sessions are more significant in terms of rituals to mark the beginning of a new business year and per se do not provide any direction to the market, which moves on a continuous basis,” said Sanjay Sinha, head of equities, SBI Mutual Fund.

“Traditionally, investors and traders only buy on the auspicious occasion. But, these days, people also sell and book profits,” a dealer said.

Samvat 2062 saw a massive 4,780 points addition or more than 60 per cent rise in the sensex.

The total market capitalisation of BSE increased by nearly 50 per cent or Rs 10,38,787.43 crore and at present hovers in excess of Rs 32,00,000 crore.

Will this samvat witness similar trends and numbers'

The year will be full of reasons to cheer for investors despite the modest beginning, say market watchers. With domestic bourses on a winning streak on the back of positive India Inc numbers, there is a lot of scope for a bullrun this samvat.

“We believe that the market will continue to grow, though maybe at a slower but steady pace,” Sinha said.

“We do believe that other than corporate numbers, the major cues the market will track are the macroeconomic developments,” said Sinha.

The ambitious infrastructure investment target of Rs 14.5 lakh by the government will take India on a high growth trajectory and provide tremendous impetus to the economy and thus the stock markets, he added.

The major sectors that may remain in favour are engineering, cement and information technology, said Sinha.

“Investors should not look at short-term returns as there are bound to be near-term bouts of volatility,” he said.

“The current rally did not see the participation of midcaps and small caps. However, the results from these companies shall see them following the blue chips,” said a portfolio manager.

Market breadth today was strong with 1,836 shares that advanced compared with 486 shares that declined. Forty nine shares remained unchanged. Total turnover on the BSE amounted to Rs 1,116.22 crore.

Gold declines

In the bullion market, global advices cast shadows on the glittering metal on the first day of Samvat 2063.

In a special Diwali Muhurat trading, gold prices fell sharply on the Mumbai bullion market today on lack of buying interest after weak overseas cues.

Standard gold (99.5 purity) declined by Rs 72 to Rs 8,770 from yesterday's close of Rs 8,842, while pure gold (99.9 purity) nosedived by Rs 73 to Rs 8,822 from the previous close of Rs 8,895.

According to traders, activity also remained restricted in the brief trading sessions. Analysts say the weakness in oil prices is dampening the metal's attractiveness as a hedge against inflation.

In New York, gold fell by $6.10 to $596.40 per ounce on Friday due to lack of physical buying. Other metals, including silver, also charted the same path. Ready silver (.999 fineness) declined by Rs 182 to Rs 18,540 from yesterday's close of Rs 18,722.

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