Nifty and Sensex trades near 6000, 20000 levels - GEPL Capital

Rajan surprised the street last evening by announcing cut in MSF by 50 bps from 9.5% to 9% in a bid to ease liquidity pressure on banks. The Governor had earlier announced that he would not wait for policy meeting to cut / raise policy rates. This adds to the uncertainty surrounding banking sector since a surprise rate change causes swift and sharp movement in banking stocks and catches investors off-guard.

Quite expectedly, BSE BANKEX (+0.67%) began the day with substantial gains but gave up most of the gains till the end of the trading session. Among the broader indices, rate sensitives gained the most; BSE REALTY (+1.57%) and BSE CAPITAL GOODS (+1.32%) while BSE METAL (-0.80%) was the worst performer.

NIFTY and SENSEX are now just a trading session away from significant levels; 6,000 and 20,000 respectively. NIFTY and SENSEX closed the day with gains of 0.38% and 0.44% respectively.

SHANGHAI COMPOSITE opened today after a week long holiday and ended the day 1.08% higher while HANG SENG too gained 0.89%. Investors seemed to have ignored China's PMI Services numbers which declined to 52.4 in September, 2013 versus 52.8 in August, 2013.

NIKKEI closed 0.30% in the green as Yen depreciated to 97.17 versus the USD against 2-month low of 96.55 couple of days back. European markets opened with losses in response to continued US shutdown and weak German factory order numbers. FTSE was down 0.77%, CAC was down 0.52% while DAX was down 0.28%.

Source : Equity Bulls

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