After a firm start yesterday morning, Nifty and Sensex downsized their gains on the back of WPI inflation data release and Railway budget. Raises in passengers’ fares and lots of promises failed to excite the market and the shares of the companies catering to railways dropped. However, the markets managed to retain the gains for fourth consecutive day. Nifty ended up 34.4 points, to close at 5463.9. Sensex ended up 105.68 points, at 17,919.30.
After the market reached the highest levels in 2012, US stocks broke their five-day streak of gains yesterday. The Dow Jones industrial average rose 16.42 points, or 0.12%, to 13,194.10 at the close. The Standard & Poor's 500 Index slipped 1.67 points, or 0.12%, to 1,394.28. The Nasdaq Composite Index inched up just 0.85 of a point, or 0.03%, to 3,040.73.
Asian shares slowed down because of concerns about China’s slower growth. Japan's Nikkei 225 index was trading 0.6% lower at 10,177.62 and Hong Kong’s Hang Seng index was trading lower at 21,301.12, down 0.03%. South Korea’s Kospi index was trading 0.01% higher at 2045.45. China’s Shanghai index was trading at 2385, down 0.2%.
Indian benchmarks opened sluggish today ahead of RBI monetary policy review. Sensex dropped 70 points and started the session at 17,846, Nifty opened at 5,4329, down 25 points. At 11.15, RBI announced that it keeps the interest rates unchanged. Repo, reverse repo and CRR remain same due to concerns about inflation risks, fiscal shortage and rupee depreciation. However the further action of RBI will be to reduce the rates. The RBI announcement caused the markets to slip. Sensex fell under 17,800 level and was trading at 12.10 at 17,663.67, Nifty dropped till 5376.
Other Economic and Political News:
- Government finalizes draft bill for coal regulator
- No decision on permitting FDI from Pak: Government
- Pranab Mukherjee sees inflation declining to 6.5% by month-end
- Coal India may divert coal under e-auction to power firms
- Sun Pharma won’t hike offer price despite Taro’s strong show
- iGate offers to buy back Patni shares
- Court rules in favor of MCX-SX in tussle against SEBI
- Wipro offer-for-sale subscribed 71%