Sensex wobbles on prices, politics - Hindustan Times
close_game
close_game

Sensex wobbles on prices, politics

Hindustan Times | ByVyas Mohan, Mumbai
Oct 08, 2007 09:07 PM IST

With possibilities of a mid-term poll looming, the benchmark Sensex of the Bombay Stock Exchange fell for a third straight session on Monday, reports Vyas Mohan.

With possibilities of a mid-term poll looming, the benchmark Sensex of the Bombay Stock Exchange fell for a third straight session on Monday as investors sold on worries that rising commodity prices and a consequent spike in inflation could reduce chances of an interest rate cut.

HT Image
HT Image

While the Sensex ended the day 281.97 points lower at 17,491.39 points, the 50-share Nifty of the National Stock Exchange closed at 5,085 points, down by 1.94 per cent.

Hindustan Times - your fastest source for breaking news! Read now.

Reserve Bank of India Governor YV Reddy said on Monday that India was vulnerable to international shocks as well as fluctuations in grain output and Congress President Sonia Gandhi rapped the party’s Left allies the day before for their opposition to the Indo-US nuclear deal.

"Political uncertainties and little idea on the likely interest rate regime have put investors in a dilemma. However, foreign funds are buying aggressively and we do not think the Sensex will dip below 16,000," said Manish Sonthalia, vice-president (equity strategy), Motilal Oswal.

With the US reporting a surprisingly positive jobs data, the chances of a further half a percentage point cut in the Fed rate, triggering an influx of money into emerging markets, look remote.

On Monday, the Bombay Stock Exchange announced the replacement of Dr Reddy's Laboratories in the Sensex by real estate giant DLF.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On