Monetary policy: Sensex, Nifty trading flat

Monetary policy: Sensex, Nifty trading flat

Monetary policy: Sensex, Nifty trading flat

Investors lost Rs 2.7 lakh crore on Tuesday as markets extended losses for the sixth successive session. However, value-buying emerged at several counters during the late afternoon session.

The 50-share NSE Nifty also climbed above 10,600 levels in opening to hit day's high of 10,614, but closed down 21.60 points at 10,476.70.

On Tuesday, the key indices witnessed their steepest intra-day fall - with the Sensex shedding a staggering 1,200 points before recovering by over 700 points - in nearly two-and-a-half years following a global sell-off. The S&P 500 ended 1.7% higher at 2,695.14 points, while the Nasdaq Composite gained 2.1% to close at 7,115.88.

Market breadth was positive with 1,802 advances against 728 declines. "A bounce back from the lows helped to curb the losses", Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.

On the sector-side, Information Technology (down by 2.04%) and Realty scrips (2.29%) are still maintaining a bad day. "Now the market is plunging due to sell-off in the global market due to sharp hike in bond yields", said Vinod Nair, Head of Research, Geojit Financial Services.

Shares in Snap jump as revenues and user numbers beat expectations
Snap said the average revenue per user rose 46 per cent from a year ago to US$1.53, offering some hope for reaching profitability. Facebook recorded stock-based compensation of $1.6 billion the year it went public, but generated over $5 billion in sales.

"Market was initially impacted by LTCG and slippage in fiscal deficit from the Union Budget. Anxiety about the RBI policy and global market movement may influence investors to stay sideline".

The rupee, meanwhile, strengthened by 20 paise to 64.04 against the dollar at the interbank forex market today on fresh selling of the American currency by exporters and banks ahead of the announcement of RBI's monetary policy. U.S. stock futures, though, hinted at further pain later tonight. "However, the tone will likely be more hawkish with probability of rate hikes in FY2019 increasing", said Suvodeep Rakshit, senior economist at Kotak Institutional Equities.

The bank monetary policies around the world depend on Thursday's meeting of the European Central Bank.

The stock market plunge on Tuesday morning washed away Rs 4.95 lakh crore of investor wealth.

The mid-cap company has equity capital of Rs 13.22 crore.

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