Wednesday 6 November 2013

Sensex trading marginally in the green

The market has opened marginally higher. The Sensex is up 25.41 points at 21000.20, and the Nifty up 7.40 points at 6260.55. About 244 shares have advanced, 85 shares declined, and 7 shares are unchanged. Technology stocks are gaining today on the back of peer company Cognizant's better than expected September quarter results.

 The company reported Q3 revenues at USD 2.31 billion, a growth of 6.7 percent sequentially and 21.9 percent compared to the same quarter last year. TCS , Wipro and Infosys are up around 1-2 percent. Cipla and Reliance are other gainers in the Sensex. On the losing side are Bajaj Auto , HUL , Sun Pharma , HDFC and BHEL . Indian rupee weakened by 38 paise in early trade on Wednesday. It has opened at 61.99 per dollar as against previous day's closing 61.61 per dollar. The US dollar maintained a bid tone early in Asian trade after upbeat US economic data kept alive some expectations that Federal Reserve might scale back stimulus as soon as next month.

 According to NS Venkatesh of IDBI Bank , currency markets will take cues from stock market movements. "Although we are witnessing some dollar inflows from exporters and custodian banks, rupee will see a weakening bias. Earlier than expected close of the RBI swap window could have an impact on dollar rupee movement in the medium term," he adds. "The range for the day is seen between 61.50-61.90/USD," Venkatesh says. In the US, markets slipped with Wall Street pausing after a two-session rise, as data showing the US services industry expanded more-than-expected in October offset softer economic headlines from Europe. The CBOE volatility index though held steady just above 13.
 In Asia, investors digested minutes from the Bank of Japan's meeting earlier this month. The yen weakened to 98.55 per dollar in early trade, which helped to underpin gains. It has been three weeks since the currency last touched regain the key 99 level. In commodities, Nymex prices hit a fresh four-month low pressured by forecasts for rising supplies and continued weak demand as Gulf Coast refineries were expected to remain offline at least through the end of this week. From precious metals space, gold struggled to shake off its longest losing streak in nearly six months as doubts persisted over when the US central bank would begin scaling back its stimulus measures.


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