IT pack witnesses positive movements

Srujani Panda / 05 Oct 2011

Indian rupee weakens as investors dump riskier assets on expectations of a sustained crisis in the euro zone.
As mentioned in our morning update markets opened sideways in line with global cues. Since then the Indian markets are trading amid extreme volatility, having notched up some early morning gains and then moved into the red on some selling pressures. However, the markets have regained strength and recovered on speculation Europe will recapitalize its banks to tame euro-zone debt crisis.

Notable losers, SBI and ICICI Bank, resumed their falls after a feeble attempt at recovery; both were down more than 2.5 per cent. Hero MotoCorp, PNB and Kotak Mahindra Bank slipped over 1 per cent. RIL, BHEL and Bharti Airtel were marginally in the red. However, auto, metal, power and ADAG stocks were quite supportive to the market. Front-liners like Infosys, ITC, HDFC, Sterlite, Maruti and Sun Pharma gained 1-2 per cent. JP Associates was the top gainer - rallied 3 per cent. ONGC, TCS, NTPC, L&T and Wipro moved up over 0.5%.

The IT pack has witnessed some positive movements on the back of a depreciating rupee. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. The Indian rupee has weakened as investors dump riskier assets on expectations of a sustained crisis in the euro zone.  

The market breadth, indicating the overall health of the market, is positive. On BSE, 1212 shares rose and 1068 shares fell. A total of 97 shares remained unchanged.

In conclusion, we expect the market to remain volatile for the remainder of the day and advice reader to stay cautious. Nevertheless we shall keep updating you regularly through our market commentary.

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