Andrew L Dcunha
Mumbai, Sep 9: After three days of strong buying BSE Sensex dipped nearly 300 points and closed below 17000 mark at 16867. Nifty ended at 5,060, down 94 points after touching a high of 5164.
US President Barack Obama’s USD 447 Billion package failed to cheer the global investors and Foreign Institutional Investors went on selling spree during the later half of the market session. The Indian rupee depreciated a fresh one-year low at 46.49 per USD, hammered by euro's losses. The markets will take cues from the Reserve Bank of India policy on September 16 and Federal Reserve Chairman Bernanke’s meeting at end of the month. Analysts said that the markets may see a rough patch as growth is expected to slow down further in the second quarter. Investors booked profit on banking shares ahead of the RBI policy next week resulting fall of Axis Bank over 4%, State Bank of India fell around 3%. Reliance Industries, Infosys and ICICI Bank declined between 2% and 3% each, dragging the Sensex down by 130 points.
Markets in Asia gave up early morning gains; losses in property and manufacturing stocks dragged the indices lower. The Nikkei Stock Average ended down 0.6%, while the Hang Seng and the Shanghai Composite indices ended marginally lower, down 0.6% and 0.2% each. European markets snapped two sessions of gains on the back of losses in banking shares; FTSE, CAC and DAX were trading lower by 1% each.
India’s Exports up 44.2% in August
Merchandise exports have been growing at an impressive speed in the current fiscal, shrugging off uncertainty in the US the debt problems in several European nations, commerce secretary Rahul Khullar commented on Friday. August exports rose 44.2% to $24.3 billion, while imports, too, grew by a fast pace of 41.8% to $38.4 billion, leaving a trade deficit of $14.1 billion for August. .Indian exporters enjoyed record growth in the last fiscal year and have notched high double digit growth in recent months, buoyed by demand for the country’s cars, petroleum products and precious stones.
Gold continues to gain on bleak global outlook
Gold extended gains and surged Rs 675 to Rs 28,590 per 10 grams in the national capital today on brisk buying as investors moved away from risky assets to darkening global economic clouds. Gold in global markets, which normally sets the price trend on the domestic front, rose by USD 13.25 to USD 1,883.43 an ounce in London
Andrew L D Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd. Mangalore. Email: finadvisoryltd@yahoo.com
