Markets regain lost ground

[rahul_parab2006]

The market exhibited a lot of pessimism, opening 500 points down. However, it showed surprising resilience as it climbed up to close in the green after spending seven days declining from its previous day's close.

Even though FIIs seem to be pulling out their funds in daily increments, the India story seems robust Mr Sukumar Rajah, CIO - Equity, Franklin Templeton Investments, India said, "From a fundamental perspective, countries like India with strong economies and relatively lower dependence on exports, remain attractive from a medium to long term perspective and are likely to weather the current uncertainty better."

The BSE recovered from an intra-day bottom which was over 700 points down to close in the green at 13,315.60 or 52.70 points up from its previous close of 13,262.90. This is a 0.40% rise as opposed to the 5.31% loss it would have seen should the day's low have also been its closing.

The Bankex as well as Oil and Gas were the only ones to show substantial gains racking up 3.68% and 2.63% respectively, Realty, which had been behaving as the Banking sectors conjoined twin for a while, found itself at the other end of the list of sectoral indices registering losses of 4.48% while Capital Goods followed close behind with a drop of 4.04%. IT lost 2.47%.

The turbulence in the market boded well for Suzlon , as it powered its way to the top of the gainers' list on the NSE with a 5.23% rise. Trailing Suzlon on the list of scrips which saw an upside were PNB, HDFC and ICICI recording gains between 3.33% and 4.52%. BPCL also figured on the rolls with a gain of 3.64%.

Ranbaxy shares lost 9.75% on the NSE today. This comes after the ban of more than thirty generic drugs produced by the company by the Food and Dug Administration (FDA) of the USA over concerns regarding their manufacture. ZEE, National Aluminium, Unitech and Satyam lost between three and a half percent to less than four and a half percent.

The Indian markets reflected the volatility in the Asian markets which went back up after early lows. European markets also closed in the black. FIIs were net sellers by 1201.64 crore even as DIIs provided support by mopping up by 1192.2 crore worth of equities.

The DIIs have been sitting on substantial amounts of cash for some time now. If they are to act in tandem, they can provide considerable support to the market.

Source : DNA India