Sensex gains 61 points; IT, TECk rally


Mumbai – The Indian markets ended Monday’s trading session flat, up 0.3 per cent. The BSE Sensex closed at 18,823, up 61 points (0.3 per cent). The NSE Nifty ended the day at 5,718, up 16 points (0.3 per cent).

“Being the first day of the October series, the markets opened with a gap up; global cues also supported the market throughout the day. The rupee rose to a near five-month high after the Government stuck to its fiscal second-half borrowing programme and also said it may not borrow more via bonds in the current year. The markets trimmed some of its gains due to profit-booking, but remained in the positive terrain throughout the day,” said Alex Mathews, Head Research, Geojit BNP Paribas Financial Services.

On the BSE, the sectoral gainers were IT (up 1.9 per cent), TECk (up 1.5 per cent) and capital goods (up 0.7 per cent). The oil & gas and banking sectors were the only sector indices to witness a decline. The oil & gas sector was down 0.3 per cent, while the banking sector index was down 0.2 per cent.

The top five stocks among the Sensex stocks were Infosys, Tata Motors, Jindal Steel, BHEL and Hindalco. Five stocks which saw the highest decline were Bajaj Auto, Tata Power, HDFC Bank, ONGC and ICICI Bank.

IMF chief Lagarde warns US of ‘Great Recession’ if it falls off ‘fiscal cliff’

Washington – The head of International Monetary Fund (IMF), Christine Legarde, has warned that threats to the U.S. economy are coming from beyond Washington, from across the Atlantic.

Legarde, during an interview at her headquarters in Washington, admitted that if the U.S. crosses the fiscal cliff, and goes over the edge, the nation might slip back into recession.

“If it was not addressed very shortly, yes,” Legarde told CBS News.

“You just look at the numbers. That would entail a growth contraction of about 2 percent in a given year. So if you assume that the U.S. economy forecast growth next year is 2 percent, 2 percent minus 2 percent equals zero. You are pretty much at the recession stage, yeah,” she added.

However, Legarde expressed optimism for the struggling Americans, a 12-and-a-half million of which lost their jobs in the great recession with the economy stumbling along since late 2007.

“Well, I would say there is good news lurking out there. In particular the fact that the housing market is picking up is in our view a clear sign the situation is improving,” she said.

“When you see that the financial institutions have been clearly strengthened, restructured and made a little bit safer and that the housing market is picking up, that’s not bad,” she added

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