Nifty Tips
Benchmark indices drifted lower Wednesday, as buyers chose to await cues from the US Federal Reserve before deciding on the next course of action. Renewed weakness in the rupee and tepid fourth quarter earnings from engineering major Larsen & Toubro weighed on sentiment.
The BSE Sensex closed at 20062.24 , down 49.37 points over the previous close. The Nifty shed 19.60 points to close at 6094.50.
Equity investors across the globe are keen waiting for US Federal Reserve chief Ben Bernanke’s speech tonight to see if he will signal a reversal of the monetary easing policy. If the Fed starts raising interest rates, it is expected that investors will start cutting exposure to commodities, especially gold, and plough a part of that money into equities.
Larsen & Toubro’s fourth quarter net profit declined 7 percent year-on-year, weighed down by higher interest cost, and was way below analyst estimates. A one-share-for-two-held bonus issue failed to pacify the market, and the stock fell 6 percent percent to close at Rs 1517.10.
Realty and capital goods shares were the worst performers today, while FMCG, healthcare and IT shares gained as investors sought refuge in defensive sectors.
The rupee fell to a near 6-month low today, and this has raised concerns that foreign investors may be tempted to book profits, fearing further weakness in the currency.
