The Sensex began the session on a flat note at 20,852. The Sensex moved higher, hitting the day’s high of 20984 in initial trades. The index started to trim gains as the session progressed. The Sensex erased all its gains in the afternoon trades and hit the day’s low of 20763. In late trades, the Sensex wiped out all its losses and turned positive as European stocks traded strong along with buying in fast moving consumer goods, realty and IT stocks.
At closing line, the Sensex closed at 20932, higher by 80 points. The Nifty shut at 6302, up by 28 points.
The key benchmark indices eked out decent gains in a choppy trading session on Tuesday tracking firm European stocks and as US index rose. The storng response to Power Grid Corporation of India's FPO which was fully subscribed on the very first day of its bidding also aided sentiment. Consumer durables, realty, FMCG and IT stocks rose. But, index heavyweight Reliance Industries edged lower in volatile trade. The market breadth was strong. State Bank of India slumped more than 4% after weak Q2 result. Capital goods stocks fell. The BSE 30-share Sensex was up 80.10 points or 0.38%, off close to 50 points from the day's high and up close to 170 points from the day's low. Tata Motors hit record high ahead of its Q2 result today.
European shares hit a two-year high on Tuesday, with several companies including Vodafone and Barclays gaining after upbeat profit statements, and with the macroeconomic backdrop boosting sentiment. The key benchmark indices in France, Germany and UK rose by between 0.64% to 0.77%.
YESTERDAY'S MAJOR HEADLINES:
State Bank of India declines on disappointing Q2 results; the stock closes 4.40% lower
Thermax buys European boiler maker; the stock ends 1.70% down
Ramco Systems wins order from Gulf Petroleum; the stock closes 4.98% higher
THE MOST IMPORTANT:
Precious metal prices finished at historic highs on Monday, 08 November 2010. Despite a strengthening dollar, precious metals trended higher on momentum following last week's confirmation of a new round of quantitative easing.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa.
FOR TODAY:
On an intra-day basis Nifty has a support at 6260 and is likely to face a stiff resistance near 6330. If Nifty breaks 6260, it may further go down to 6230 and then 6190. However, if Nifty is able to sustain above 6330, the level of 6350-6375 would become the next target.
