If Nifty closes below 5,830, it will be an early sign of weakness. For now, the trend is up.
On a sharply lower volume of just 44.67 crore shares on the National Stock Exchange (NSE), which is 40% lower than normal volumes, the Nifty made a marginal gain of 10 points on Tuesday. The indices are moving sideways in anticipation of the monetary policy of Federal Reserve of the US and the policy announcement of the Reserve Bank of India (RBI) on the 20th September.
The NSE Nifty moved in a narrow range throughout the session. It opened in the negative at 5,824 and moved in the range of 5,805 and 5,858 and closed at 5,850 (up 10 points or 0.17%).
The BSE 30-share Sensex opened lower at 19,722 and after a volatile session of moving on both the sides of yesterday’s closing, closed in the positive for the second session. The Sensex moved in the range of 19,635 and 19,819 and closed at 19,804 (up 62 points or 0.31%).
In fact, the Nifty has been trapped in a narrow range for six days now. This will change soon with a strong move, either up or down.
The top five gainers among the other indices on the NSE were IT (1.71%); MNC (1.03%); Metal (0.85%); FMCG (0.67%) and Auto (0.65%). The only five losers were PSU Bank (1.39%); Finance (0.89%); Bank Nifty (0.86%); PSE (0.77%) and Energy (0.75%).
Of the 50 stocks on the Nifty, 29 ended in the green. The top gainers were HCL Technologies (4.20%); Dr Reddy (3.37%); Ranbaxy (3.28%); UltraTech Cement (2.93%) and Jindal Steel (2.42%). The top five losers were Sun Pharma (3.71%); Bank of Baroda (3.66%); Axis Bank (3.20%); IndusInd Bank (3.00%) and ONGC (2.61%).
Ahead of his first monetary review, RBI governor Raghuram Rajan is slated to meet Finance Minister P Chidambaram. Today the rupee was trading at 63.10 per US dollar lower from the previous close of 62.8475 per dollar.
India's gross borrowing of Rs6.29 trillion for the current fiscal year will include Rs500 billion of debt switch as per the budgeted plan, three sources familiar with the matter told Reuters. India plans to lengthen the maturity of its rupee debt portfolio by replacing some shorter tenor debt with longer-dated paper.
According to a rating agency, with wholesale price based inching up in July, the RBI may have to up its March-end inflation forecast, which was estimated at 5% during the annual review of monetary policy in May.
Both Dow Jones and S&P 500 closed in the positive while the Nasdaq Composite ended in the negative on Monday.
Asian indices had a mixed performance. KLSE Composite was the top gainer, up 0.23% while the Shanghai Composite was the top loser, down 2.05%.
European indices were trading in the red. US Futures were flat.