Sensex Hovers Around 25K, Nifty Holds 7,600 Amid Mixed Global Cues
Sensex, Nifty in caution mode amid mixed global cues.
Domestic equity markets opened on a note of caution but with a mildly positive bias amid mixed cues from Asian markets. The BSE benchmark Sensex slipped below 25,000 at the start but later managed to eke out minor gains to keep its head above that level. The Nifty held on to the 7,600 mark as well.
Rate sensitive stocks like banks and auto were trading in the green while pharma stocks slipped into the red.
Rupee Extends Winning Streak
Extending its rising streak for the third day, the rupee appreciated by 8 paise to 66.49 against the US dollar in early trade on continued selling of the American currency by banks and exporters.
Forex dealers said besides sustained selling of the greenback by banks and exporters, the dollar’s weakness against other currencies overseas as investors await Federal Reserve Chair Janet Yellen’s speech on monetary policy, backed up the rupee at the Inter-bank Foreign Exchange.
However, a weak trend in early trade in the domestic equity market capped the gains, they added. The local currency had gained 7 paise to close at 66.57 in Monday’s trade.
Asian Shares Slump Ahead of Yellen’s Speech
Asian shares struggled to find their footing on Tuesday and the dollar clawed back ground lost after downbeat US economic data contributed to an uninspiring session on Wall Street.
Investors awaited Federal Reserve Chair Janet Yellen’s speech later on Tuesday for fresh signals on the outlook for US interest rate hikes, after a chorus of hawkish comments from other Fed officials.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped about 0.4 percent after wavering for most of the early session.
Japan’s Nikkei skidded 0.5 percent as the Japanese fiscal year draws to a close at the end of this month, with the mood not helped by mixed economic data released before the market opened.
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