Nifty rise notwithstanding 2G woes

MUMBAI (Makemystocks): Indian stock markets gained for the third straight day and Nifty ended above 5250. Bharti Airtel was the major contributor to lift the Nifty today. Good buying was seen in telecom major, Bharti Airtel as investors expected that it could emerge as one of the major beneficiaries following today’s Supreme Court decision.

The S&P CNX Nifty today gave gap up open at 5272 but sudden and sharp fall was seen after the news came that the Supreme Court has canceled all the 2G licenses given to the telecom firms and Nifty touched the low of 5226. However, Nifty recovered the losses and ended at 5270 up by 34 points.

Nifty has made doji on daily charts today after rising since 5 consecutive weeks which shows investors jittery as market looks overbought on current levels for the time being and ongoing political issues.

Today heavy selling was witnessed in the telecom stocks due to Supreme court verdict except in Bharti Airtel and Idea. RCOM, DB Realty, Unitech, Videocon Industries, Idea Cellular and TTML were on the loosing side.

The European markets are trading flat. The FTSE index is down by 7 points, DAX index is up by 6 points and CAC index is down by 6 points.

The market breadth, indicating the health of the market was positive. On NSE, 802 shares advanced while 652 shares declined. Total of 63 shares remained unchanged.

Out of 50-share S&P CNX Nifty pack, 32 scrips advanced while 18 scrips declined. Bharti Airtel was up by 6.48%, HCL Tech was up by 5.28% and ACC was up by 5.16% were the top gainers from the Nifty pack.

IDFC was down by 5.04%, Rcom was down by 4.28% and Rpower was down by 2.46% were the top losers from the Nifty pack.

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