On Monday 25 July 2011,Showcasing immense resilience in the face of slothful global setup amidst prevailing caution ahead of the RBI's monetary policy review scheduled to be held tomorrow, Indian
equity markets withholding previous session's spirit ended in green territory on Monday. Slew of positive development such as clearance of the Retail FDI proposal coupled with the passing off the RIL- BP deal, mainly cheered the Dalal Street, distracting investor's fears over probable another rate hike. The street expects rates Reserve Bank of India (RBI) to raise its rate by a total 50 basis points (bps) by the end of the year, including 25 bps increase on Tuesday. On the global front, the US markets made a mixed closing on Friday, as concerns of lawmakers agreeing to increase country's debt limit amid some weak earnings announcements, weighed on the sentiment. Meanwhile Asian markets fell Monday, weighed by concerns over stalled negotiations on raising the US debt ceiling, which spurred the safe-haven yen higher and pressured shares of Japan's exporters. Mainland Chinese shares tumbled on lingering worries about the nation's economic growth outlook, with railway stocks hit especially after a high- speed rail system accident occurred over the weekend. European shares fell on Monday from their highest in more than a week in the previous session as investors cut riskier assets on the possibility of a first-ever US debt default after talks between Democrats and Republicans again collapsed. Also, US stock index futures dropped on Monday as a political impasse in Washington's debt ceiling talks fuelled worries of a US default, knocking world equities lower and pushing gold to a record high.
The BSE Sensex gained 144.79 points or 0.77% and settled at 18,867.09. The index touched a high and a low of 18,932.27 and 18,670.84 respectively. 24 stocks advanced against 6 declining ones on the index (Provisional). The BSE Mid-cap index gained 0.45% while Small-cap index was up 0.48%. On the BSE Sectoral front, Metal up 1.36%, HealthCare up 1.35%, Auto up 1.31%, TECk up 1.30% and Capital Goods up 1.24% were the top gainers. On the flip side, FMCG down 0.84% and IT down 0.03% were the only losers.
India VIX, a gauge for market's short term expectation of volatility gain 7.20% at 19.20 from its previous close of 17.91 on Friday (Provisional). The S&P CNX Nifty gained 45.85 points or 0.81% to settle at 5,679.80. The index touched high and low of 5,700.55 and 5,616.70 respectively. 39 stocks advanced against 11 declining ones on the index. (Provisional)
All the Asian equity indices finished the day's trade in the negative terrain on Monday after US political leaders failed to reach a deal to raise Washington's debt limit that is crucial to avoid an impending default. Chinese Shanghai Composite crumbled about three percent in the trade, weighed down by railway stocks after a deadly train crash at the weekend, while worries over a potential US debt default too hurt the
traders' sentiments.
