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First Trade: Sensex volatile on early morning trade

The Indian Stock markets opened on a volatile note with the BSE sensex opening in green to touch the intraday high of 15,418.61, a 187 point jump from yesterday’s closing figure of 15,231.04. However, within minutes, the Sensex lost the early gains to fall below yesterday’s close before once again climbing back to green. Yesterday, the Index had closed after gaining over 385 points.

In the national stock exchange, the performance was similar with the S&P CNX Nifty going through same ups and downs as experienced in Sensex. The index opened at 4524.80 to shoot by over 50 points to register intraday high of 4575.15 before falling by over 60 points. Like Sensex, Nifty too was last trading in green.

Among other major indices in the BSE, the Mid cap and Small cap were trading high with a lead of almost 1%. Among Sectoral indices, Auto, led by Maruti Suzuki, Mahindra and Mahinra and Tata Motors was the biggest gainer. The main losers of during early morning trade were Banking, FMCG and Oil & Gas indices. Following the Reserve Bank of India’s guidelines on credit cards, the stocks of banking companies witnessed an early fall. It is feared that the new guideline issued by the RBI on verification and authentication may result is 30% drop in business of banks in upcoming days.

Earlier, the stock markets in US and Europe closed on a positive note amidst hopes of improvement in US economy. The Dow Jones Industrial Average ended the day 188 points or over 2% above previous close. NASDAQ and S&P 500 too closed with a lead of 2.45% and 2.33%. Following US and European cues, the Asian markets too opened strong and were last trading in green.