Millennium Post

Jaitley fails to lift market sentiment; Sensex dips 72 points & ` 44p

Despite number of announcements made by the Finance Minister in its maiden Union Budget 2014-15, the negative factors like deficit in monsoon and no signs of revival in the economy put the pressure on the market for the third day in a row as the benchmark S&P BSE Sensex on Thursday declined further by 72 points to end at 25,372.75, in an otherwise high volatile trade.
Moving in tandem with equities, the rupee on Thursday tumbled 44 paise, posting its biggest drop in nearly a month, to end at 60.19 against the dollar.

The Union Budget announced by Finance Minister Arun Jaitley did gave a roadmap to revive the economy by proposing a slew of measures, including tax benefits and easier regulations for foreign investors and corporate bonds besides creating a new instrument Bharat Depository Receipts, which lifted the BSE 30-share benchmark sensex up by over 475 points to a high of 25,920.46.
FM also announced inventive for real estate and investment trust (REIT).

But according to market participants FM's target of 19.7 per cent growth in tax revenues for FY15 may appear ambitious and things could look up just as quickly as they can go bad.
Only, the good part is that the FM has not made overly optimistic projections, and so the scope for disappointment could be limited.

The Sensex, in late afternoon, dropped to settle at 25,372.75 on heavy profit-booking by wary operators, showing a fall of 72.06 points or 0.28 per cent. It moved erratically in a wide range of over 800 points. The wide-based 50-issue CNX Nifty of the NSE also eased further by 17.25 points or 0.23 per cent to end at 7,567.75. Shares from consumer durable, auto, IT and banking segments suffered losses while from Realty, Power were in demand.

No sops... still gold zooms `750 to `28,605 per 10 gm
Gold rose sharply and reclaimed the key Rs 28,000 per 10 grams mark at the bullion market here on Thursday on emergence of frantic buying by stockists and speculators amid strong global sentiment. Silver too surged and closed above the Rs 46,000 per kg level on the back of heavy industrial demand.

Traders and investors, who were on the sidelines expecting an import duty cut on the yellow metal in the maiden Union Budget of the Modi Government, got into a buying mode, triggering a rally, a trader commented. Standard gold (99.5 purity) galloped by a whopping Rs 750 to conclude at Rs 28,605 per 10 grams from Wednesday's closing level of Rs 27,855.

Pure gold (99.9 purity) also jumped by a similar margin to end at Rs 28,750 per 10 grams against Rs 28,000. Silver (.999 fineness) skyrocketed by a massive Rs 1,150 to finish at Rs 46,580 per kilo from Rs 45,430 yesterday. Globally, the shiny metal rallied on weak dollar as well as bargain hunting after US Fed's minutes of the recent policy meet gave no indication of interest rate hike.

NSE sees record volumes in equity derivatives, interest rate futures
Leading stock exchange NSE on Thursday saw record volumes in equity derivatives at Rs 4.41 lakh crore and Rs 3,248.83 crore from interest rate futures. As many as 1.14 crore derivative contracts were traded on the National Stock Exchange (NSE) amounting to a turnover of Rs 4.41 lakh crore, a record high for a day, the bourse said.

Out of this total turnover, trading in index options took the highest share with Rs 3.31 lakh crore followed by stock futures contracts at Rs 51,451 crore. In comparison to NSE, equity derivative turnover on the BSE stood at Rs 24,855 crore with 6.58 lakh contracts. Meanwhile, NSE bond futures (interest rate futures) today touched its highest level for a day at Rs 3,248.83 crore. On the other hand, BSE saw a turnover of 108.64 crore from trading in interest rate futures. An IRF is generally a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as government bonds.
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