Oct 10, 2008

Markets tumble once again

17 Sep 2008 | 18:32
Markets tumble once again

Markets once again succumbed to selling pressure on the back of news that large European banks may be facing financial crisis. Fitch has downgraded HBOS to AA from AA+. HBOS is UK's largest residential mortgage lender.

While the Sensex finally shed 255.90 points or 1.89% at 13,262.90, the Nifty lost 66.65pts or 1.64% to close at 4008.25. The broad market indices too ended lower as the BSE Midcap and Smallcap indices lost 1.49% and 1.19% respectively. The market breath was poor, as A/D ratio was 0.51:1 on the BSE. NSE cash turnover was Rs.12,279crs. Vs. Rs.12,316crs. on Tuesday.

All the sectoral indices ended lower. The biggest losers were the BSE Realty, Bankex, Metals and FMCG indices. The indices that lost the least were the BSE Auto and IT indices. Top Gainers from the BSE-30 were Tata Motors, ONGC, Wipro, ACC and Infosys. The top losers were Sterlite, Ranbaxy, ICICI Bank, ITC, HDFC Bank and SBI.

The pullback that we saw yesterday did not continue today as the markets witnessed selling pressure at higher levels. The trend continues to remain undoubtedly down and we continue with our strategy of using any pullback rallies to lighten existing long positions and initiate fresh shorts. Any further upsides could find resistance at 4150-4200 on the Nifty.