Nifty ends at 5000 amid volatility; Bharti up 5 per cent, ITC dips 4 per cent
09 Jun 2010
The benchmark Nifty closed with modest gains, after witnessing a consolidation throughout session. It settled at 5,000 level, after struggling to hold the same level since beginning of trade today.
The markets consolidated today after previous two-day sell-off on back of weak global cues. The Sensex shot up more than 200 points after European markets opened 1% higher but that could not sustain for long.
The 30-share BSE Sensex closed at 16,657.89, up 40.79 points or 0.25% and the 50-share NSE Nifty rose 13.20 points or 0.26% to settle at 5,000.30. Nifty June futures turned into premium of 7 points from 20 points.
Telecom, oil & gas, metal, capital goods, private banking and realty companies' shares helped indices to remain in positive terrain. However, the sell-off in technology and FMCG companies' shares along with NTPC, Tata Power, Tata Motors, SBI, Power Grid, Hero Honda and Siemens added to volatility.
Bharti Airtel was the top gainer on Nifty; shot up 5.3%. The telecom major was in focus as it closed the Zain Africa acquisition on Tuesday. However, rating agency Standard & Poor's tried to play party pooper and cut Bharti's rating to BB+ from BBB-. The downgrade was on account of worsening leverage and cash flow ratios.
Akhil Gupta, Deputy Group CEO and MD, Bharti Enterprises, said he absolutely disagrees with S&P's assessment. "We see no reason why our business will go down. We have built up net cash positions in the past for major acquisitions. Every good company should have a reasonable amount of debt."
