Oct 10, 2008

Markets end lower for the second consecutive day Markets closed sharply lower on the back of selling pressure and weak global cues.

10 Sep 2008 | 19:08
Markets end lower for the second consecutive day Markets closed sharply lower on the back of selling pressure and weak global cues.

Markets end lower for the second consecutive day Markets closed sharply lower on the back of selling pressure and weak global cues. They opened lower following negative cues from US markets as financial stocks tumbled on the back of news that Lehman Brothers failed to raise capital. Though Indian markets tried to recover in the afternoon, it did not succeed and slipped further after 1:30 pm due to weakness in European markets.

While the Sensex lost 238.15 points or 1.60% at 14,662.61, the Nifty shed
68.45 points or 1.53% at 4,400.25. The broad market indices too ended lower as the BSE Midcap and Smallcap indices lost 1.20% and 0.88% respectively.
The market breath was negative, as A/D ratio was 0.54:1 on the BSE. NSE cash turnover was Rs.11,988crs. Vs. Rs.10,403crs. on Tuesday.

Today’s weakness did not spare any sectoral index as all of them ended lower. The biggest losers were the Metals, Oil and Gas, Power and Realty indices. The indices that lost the least were the IT and FMCG indices.
Gainers from the BSE-30 were Grasim, ACC, Infosys, Ranbaxy and SBI. The top losers were Sterlite, Tata Steel, Tata Power, Rel infra, Bharti Airtel and Reliance.

With today’s weakness, the short term uptrend once again is under threat.
The coming sessions will be crucial as it is important that the Nifty doesn’t close below 4330. We recommend a go slow approach on fresh long positions till we see signs of strength

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