The key benchmark indices snapped last three days' losses, posting small gains, in a highly volatile trading session. Index heavyweight Reliance Industries edged higher in choppy late trade. The BSE 30-share Sensex rose 64.82 points or 0.43%, up close to 210 points from the day's low and off close to 140 points from the day's high. The Sensex alternatively moved above and below the psychological 15,000 mark, ultimately closing above that mark. The barometer index BSE Sensex had plunged 894.06 points or 5.62% in the preceding three trading sessions.
Auto stocks rose on bargain hunting after heavy losses in the past three trading sessions. But IT stocks fell. The market breadth swung between positive and negative zone in late trade.
Intraday volatility was high. The key benchmark indices fell in early trade extending last three days' near 6% losses on concerns below-normal rains may hamper a nascent economic recovery. Bargain hunting triggered a recovery later. The barometer index regained the psychological 15,000 mark in morning trade after falling below that mark in early trade.
The Sensex surged in early afternoon trade after Finance Minister Pranab Mukherjee said the government is prepared to manage a drought and a contingency plan was also in place. The market pared gains in afternoon trade. The market jumped to hit fresh intraday high in mid-afternoon trade. A sudden slide pulled the market into the red shortly thereafter. The market regained positive zone later.
Investors are worried that scanty rains may hamper a nascent revival in the domestic economy. The India Meteorological Department (IMD) on Monday, 10 August 2009, pared its forecast for the June-September South West monsoon for a second time in three months and said state governments were free to announce drought. Rain in the June-September season will be 87% of the long-period average, compared with 93% in June 2009, Ajit Tyagi, director general at India Meteorological Department said. Rainfall could be 4% more or less than the estimate, he said.
Finance minister Pranab Mukherjee today said that threat of a drought looms large over 161 districts and sowing of crops was down by a fifth. Mukherjee said the government is sticking to a gross domestic product (GDP) growth target of more than 6% for the year ending March 2010 (FY 2010). He was confident that direct tax receipts target for FY 2010 would be surpassed.
Finance minister Pranab Mukherjee today said that threat of a drought looms large over 161 districts and sowing of crops was down by a fifth. Mukherjee said the government is sticking to a gross domestic product (GDP) growth target of more than 6% for the year ending March 2010 (FY 2010). He was confident that direct tax receipts target for FY 2010 would be surpassed.
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Nifty August 2009 futures were at 4468, at a discount of 3.35 points as compared to the spot closing of 4471.35. Turnover in NSE's futures & options (F&O) segment was Rs 63,519.37 crore, lower than Rs 68,493.48 crore on Monday, 10 August 2009.
Reliance Industries August 2009 futures were at a slight discount at 1999, compared to the spot closing of 2000.40.
Tata Steel August 2009 futures were at premium at 465.50 compared to the spot closing of 463.10.
ICICI Bank August 2009 futures were at premium at 718.45 compared to the spot closing of 717.10.
In the cash market, the S&P CNX Nifty gained 33.70 points or 0.76% at 4471.35.
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