Traders moonlighting Dow Jones after stock markets slump

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By S Jha

New Delhi, October 13: The Indian equity market remained in a firm grip of swing volatility, diving in the reds, while the traders were moonlighting their Dow Jones charts after an extraordinary turnaround that gave a massive green candle for a 1000-pint reversal on Thursday in the early sessions.

The Sensex and the Nifty ended in deep red on Thursday, a weekly expiry, as the volatility cut through the traders on both the sides, as they kept their eye on the US Futures markets, which were sinking amid the spike in the inflation number and the accompanying fear that the Fed would stick to raising rates for a longer period. The US treasury yields too had spiked earlier to over four per cent to a level not seen in 20 years, leading to a 500-point dive in the Dow Jones. But it recovered sharply with over two per cent gains, with traders hoping that the inflation would be peaking.

Barring healthcare and metal, all the indices in the Indian stock markets were in deep reds, as the foreign institutional investors continued their selling spree, with a net sell of Rs 1636 crores on Thursday. In three days, the FIIs have sold a net of over Rs 6000 crores in the Indian stock markets in line with the global trend, as they seek safer investments in the US amid rising dollar. The banking index which had been helping the Indian stock markets came under heavy selling pressure with even their leader of this week the Axis bank giving most of the gains of the last two trading sessions.

While the quarterly earnings season has commenced, Wipro cracked by over seven per cent after coming out with a dismal set of numbers. In contrast, HCL Technology remained firm after it beat the street estimates with numbers. Infosys also came out with its numbers, but the scrip ended almost flat, even while the company announced a buyback at a premium of over Rs 1850 a share, while the scrip is at about Rs 1400, at a cost of Rs 9300 crores.

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