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Sensex rangebound as stronger IIP data quash rate cut hopes

Mar-12-2012

Date: 12.03.2012

The week began on a buoyant note for the stock markets with both Indian benchmark indices Nifty and Sensex gaining in early trade on Monday reacting to the RBI’s surprise cash reserve ratio cut by 75 basis points in the last leg of trade on Friday.

Sensex opened at 17,772, up 269 points from its previous close, while the Nifty opened at 5,420, gaining 87 points from its previous close.

However, the indices soon gave up initial gains and trading was lacklustre as stronger-than-expected factory output for January reduced hopes for a rate cut.

At 3.10 p.m., the BSE benchmark index was trading 97 points higher at 17,600 while the NSE Nifty was up 26 points at 5,360. Among the Sensex 30 stocks, RIL, SBI, L&T, and ICICI Bank were the significant gainers. Infosys, HDFC and ITC were the top three laggards.

Most sectoral indices were trading in the green led by capital goods, consumer durables and realty. IT, TECk and Health Care were in the red.

Globally, US and European markets closed in the green but Asian stocks fell on the back of Chinese exports growing at a slower pace than economists forecast, offsetting a rebound in Japan’s machinery orders and better-than-expected US jobs data.