Sensex down 55 points in early trade on profit-booking
inflation faded hopes of a rate cut
by the Reserve Bank.
The 30-share index fell by 55.25 points, or 0.28%, to 19,687.22 in early trade with shares of banking, capital goods, FMCG and realty leading the fall. Sensex had gained 9.71 points in the previous session.
Similarly, the wide-based National Stock Exchange index Nifty declined by 19.40 points, or 0.33%, to 5,821.15.
The 30-share index fell by 55.25 points, or 0.28%, to 19,687.22 in early trade with shares of banking, capital goods, FMCG and realty leading the fall. Sensex had gained 9.71 points in the previous session.
Similarly, the wide-based National Stock Exchange index Nifty declined by 19.40 points, or 0.33%, to 5,821.15.
"From
the current economic situation in the United States, we expect only a
mild tapering, not any big action," said Helen Lau, an analyst at
UOB-Kay Hian in Hong Kong. "So there would still be support for gold
prices."
Lau said if the Fed does not begin tapering its stimulus this year, gold prices could be between $1,400 and $1,500 by the end of the year.
Spot gold had risen 0.03% to $1,313.76 an ounce by 0328 GMT, after falling 1% in the previous session to a five-week low of $1,303.85.
"The technical signals are neutral now, with strong support at $1,307," Phillip Futures analysts wrote in a note.
"We are inclined to believe that the support level will not hold and prices are likely to head straight for $1,227.20 should there be large movement that breaks out of the current consolidative range," the Phillip analysts said.
Silver rose nearly 1 percent after falling more than 2 percent on Monday.
Lau said if the Fed does not begin tapering its stimulus this year, gold prices could be between $1,400 and $1,500 by the end of the year.
Spot gold had risen 0.03% to $1,313.76 an ounce by 0328 GMT, after falling 1% in the previous session to a five-week low of $1,303.85.
"The technical signals are neutral now, with strong support at $1,307," Phillip Futures analysts wrote in a note.
"We are inclined to believe that the support level will not hold and prices are likely to head straight for $1,227.20 should there be large movement that breaks out of the current consolidative range," the Phillip analysts said.
Silver rose nearly 1 percent after falling more than 2 percent on Monday.
shane haider
pgdm 3rd
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