Sensex discounts FDI win in RS, loses 63
8 Dec 2012 7:18 AM IST
The Bombay Stock Exchange’s (BSE) benchmark 30-share Sensitive Index (Sensex) closed with a 63-point loss on Friday after the pro-West economic reforms received a big shot in the arm, with the Congress-led UPA government winning the vote in the Rajya Sabha on foreign direct investment (FDI) in multi-product retail.
The Sensex ended the day 62.70 points (0.32 per cent) lower at 19,424.10, led by realty and information technology (IT) stocks. It had gained 182 points in the last three sessions on hopes that the government would secure Parliamentary approval for the opening up of multi-product retail trade to foreign investors.
‘The markets, which had touched 20-month highs, are already discounting the government’s victory in the Rajya Sabha,’ said Kotak Securities Head (Private Client Group Research) Dipen Shah.
Of the 30 Sensex stocks, 19 declined including RIL, Infosys, TCS, HDFC and ICICI Bank. The National Stock Exchange’s (NSE) 50-issue S&P CNX Nifty, too, fell by 23.50 points (0.40 per cent) to close the day at 5,907.40. At the closing stages of trading, the government won Parliament’s approval of its controversial decision to allow FDI in multi-brand retail, with a motion against it being defeated convincingly in the Rajya Sabha. The government had already won the FDI vote in the Lok Sabha on December 5.
Brokers said that benchmark indices, too, were weighed down by IT stocks as the sector continued to be under pressure on growth worries. Auto counters, however, attracted good buying support after Maruti Suzuki rose to a one-year high in the wake of the company’s announcement on Thursday that it would hike the prices of vehicles across all models by up to Rs 20,000 from January.
On a weekly basis, the stock markets extended gains for the third straight week. The only concern for the markets comes from the currency perspective as the dollar-Rupee pair has not violated the support of 54 levels despite positive news flows, said IIFL Head of Research Amar Ambani.
The Sensex ended the day 62.70 points (0.32 per cent) lower at 19,424.10, led by realty and information technology (IT) stocks. It had gained 182 points in the last three sessions on hopes that the government would secure Parliamentary approval for the opening up of multi-product retail trade to foreign investors.
‘The markets, which had touched 20-month highs, are already discounting the government’s victory in the Rajya Sabha,’ said Kotak Securities Head (Private Client Group Research) Dipen Shah.
Of the 30 Sensex stocks, 19 declined including RIL, Infosys, TCS, HDFC and ICICI Bank. The National Stock Exchange’s (NSE) 50-issue S&P CNX Nifty, too, fell by 23.50 points (0.40 per cent) to close the day at 5,907.40. At the closing stages of trading, the government won Parliament’s approval of its controversial decision to allow FDI in multi-brand retail, with a motion against it being defeated convincingly in the Rajya Sabha. The government had already won the FDI vote in the Lok Sabha on December 5.
Brokers said that benchmark indices, too, were weighed down by IT stocks as the sector continued to be under pressure on growth worries. Auto counters, however, attracted good buying support after Maruti Suzuki rose to a one-year high in the wake of the company’s announcement on Thursday that it would hike the prices of vehicles across all models by up to Rs 20,000 from January.
On a weekly basis, the stock markets extended gains for the third straight week. The only concern for the markets comes from the currency perspective as the dollar-Rupee pair has not violated the support of 54 levels despite positive news flows, said IIFL Head of Research Amar Ambani.
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