Money Tree

Both NIFTY and Sensex closed in the red after a volatile session. The NIFTY had a gap down opening in the morning and slipped to 4126 and from there it bounced back and went in the positive territory for some time but fell down again in the last leg of trade to close at 4145 down 34.5 points from its previous close, Sensex also lost 122.37 points to close at 14063.81. The major contributors to the fall in NIFTY were ACC down 5.27 percent at 762, OBC down almost 5 percent at Rs. 212, HDFC down 3.72 percent at Rs. 1751, VSNL down 4.3 percent at Rs.452, TATA Steel down 5.19 percent at 583, SAIL down 4.57 percent at Rs. 124 and HP and BP were also down more than 3.5 percent at 261 and 331 respectively. A few Nifty gainers were hindalco up 3.23 percent at 128, satyam up 2.5 percent at 493.7 and ONGC up 2.3 percent at 872. The advance decline ratio was also negative with 368 advancing stocks to 729 declining.

Inflation falls under 5 percent

The inflation numbers released today for the week ended on 26th May 2007 stood at 4.85 percent as against 5.06 for the previous week. The inflation number under 5 has been the target of the Reserve Bank of India and with the dollar gaining strength again (currently above Rs. 41), the apex bank might not raise interest rates further.