May 8, 2008

Indian Markets - Weakness continues - 6 May 2008

06 May 2008 | 18:09

Weakness continues

Markets opened on a weak note and slipped through the day. While the Sensex was down 117.89 points or 0.67% at 17,373.01, the Nifty lost 47.6 points or 0.92% to close at 5144.65. The broadmarket indices underperformed the frontline indices as they lost more. While the BSE Midcap index lost 0.94%, the Smallcap index lost 1.09%. Market breadth was negative, as A/D ratio was 1:1.8 on the BSE. NSE cash turnover was Rs.14,647.15 crs Vs. Rs.14,798.12 crs. yesterday.

Most of the BSE Sectoral indices ended in the red. The BSE IT and FMCG indices were the top gainers with gains of 1.53% and 0.97% respectively.

The top losers were BSE Realty, Power, Capital goods and Healthcare.

Gainers from the index pivotals included Satyam, ITC, Infosys, Tata Steel and Wipro. Losers included Bharti Airtel, DLF, Jaiprakash Associates, Reliance Energy and BHEL.

With the main indices near some strong supports, the downsides seem limited. Moreover, with the underlying trend up, we believe the current weakness will provide excellent opportunities for the trader and investor to buy stocks. The Nifty is likely to consolidate between the 5000 and 5200 levels in the coming sessions.