 "Sensex drifts lower on negative FII flows, sugar stocks soar")
The Indian markets again opened negative after plunging 300 points yesterday as continued political uncertainty and negative FII flows flared fresh worries for investors.
Markets have been hostage to political events and the recent comments made by the BJP’s senior-most leader LK Advani sparked fresh worries of early elections. Advani said that Lok Sabha elections could be held earlier than scheduled, even this year, according to media reports. Continued political uncertainty and negative FII flows flared fresh worries in the mind of investors.
[caption id=“attachment_687216” align=“alignleft” width=“380”] Reuters[/caption]
At 9:30 am, the Sensex was down 30 points at 18479, while the Nifty was down 8 points at 5565.
According to a Reuters report, foreign funds sold shares worth Rs 368 crore ($67.60 million) on Wednesday, provisional exchange data showed.
Technical analyst Sudarshan Sukhani of s2analytics.com advises against trading on the short side today.
“For the day the market could easily be choppy, a gap down and then attempts to cover the gap and a lot of chaos could come around. So, today is probably not a good day to trade the Nifty,” he said in an interview to CNBC-TV18.
Meanwhile, India has decided to renegotiate its 82 bilateral investment treaties to safeguard country’s interests after many foreign investors have invoked international arbitration when their local investments ran into trouble or they faced adverse policy action, says a report.
Stocks in news
Sugar stocks are buzzing this morning after the government decontrolled the sugar sector by abolishing the monthly release mechanism and doing away with the mills’ obligation to supply levy sugar for subsidised distribution under the Public Distribution System (PDS). Among sugar companies, Balrampur Chini is up 9.3 percent, Shree Renuka is up 7.4 percent and Bajaj Hindusthan is up 8 percent.
Essar Oil surged 6.1% to Rs 83.50 after the firm said it has completed the process for exiting the corporate debt restructuring loan facility set up in December 2004 to help cover the construction of its Vadinar refinery in Gujarat
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