 "Sensex opens flat again, Wipro top loser despite good show")
The Indian markets opened flat for a third straight day today on global cues and weak US job data. Disappointing US jobs data has firmly pushed expectations for the tapering of Federal Reserve stimulus into next year.
The BSE Sensex opened at 20887, up 32 pts, 0.16 percent while the Nifty opened up 13 pts, or 0.21 percent at 6216.
Indian rupee strengthened by 55 paise in early trade on Wednesday at 61.10 per dollar as compared to previous day’s closing of 61.65.
[caption id=“attachment_1074773” align=“alignright” width=“380”]
Brokers monitor share prices while trading at a brokerage firm in Mumbai. Reuters[/caption]
Pramit Brahmbhatt of Alpari India feels a weak dollar due to poor US jobs data may aid rupee gains seen this week. Also healthy capital inflows by FIIs and dollar selling by exporters at around 62/dollar levels will add to gains, he adds.
“However, strong month-end dollar demand from importers may cap gains. The range for the day is seen between 61.05-62/dollar,” Alpari said.
From precious metals space, gold prices hit at a three-week high after weak US jobs figures raised expectations no taper by the Fed well into 2014. Analysts see higher levels if the dollar weakens further today.
Meanwhile, the markets in US recovered from session lows to close higher with the S&P 500 hitting a new high above 1,750, after the tepid September jobs report gave further evidence to investors that the Federal Reserve will continue to support the economy at the current pace. The Dow was trading within 1.5 percent of its all-time record set last month and the NASDAQ hit a fresh 13-year high.
BSE power index is the top sectoral gainer, up 0.8 pct; BSE IT index sits at the bottom of the sectoral pack with losses of 0.5 pct. The top Sensex gainers are–GAIL rises 2.3 percent, Tata Power up nearly 1 percent, Hero MotoCorp adds 1 percent.
Stocks in news:
Wipro is the top loser on BSE Sensex as its shares fell 4 percent in the opening trade. Wipro Ltd, India’s third-largest IT services exporter, beat analyst estimates with a 28.5 percent rise in quarterly profit thanks to higher spending by its biggest clients.
Consolidated net profit for the three months ended Sept. 30 rose to Rs 1932 crore ($314.15 million) from Rs 1504 crore a year earlier, Wipro said in a statement after the close of markets on Tuesday.
Cairn India also fell 1.37 percent even after it posted a 8 percent growth in its consolidated net profit to Rs 3,385 crore.
Wockhardt is up 1 percent. Britain’s drug regulator revoked the quality compliance certificate for a Wockhardt Ltdfactory in India, the drugmaker said on Tuesday, the third of its plants to be hit by export restrictions this year.