Market on 11th Feb, 2008

After opening on a weak note in the morning, the markets continued to slip through the day to finally end near the lows of the day. Selling pressure was witnessed across the board. While the Sensex was down 833.98 points or 4.78% at 16,630.91, the Nifty lost 263.35 points or 5.14% to close at 4857. Broadmarket indices underperformed the frontline indices. The BSE Midcap and Smallcap index closed down 5.42% and 4.84% respectively. The market breadth was pathetic, as A/D ratio was 1:11 on the BSE. NSE cash turnover was Rs.19724.57cr vs. Rs.13650.93cr on Friday.

Barring the BSE IT index that closed on a flat, all the BSE Sectoral indices ended in the red. The worst hit were the BSE Oil & Gas and Power, which lost 7.07% and 8.61% respectively. Gainers from the index pivotals include IT majors Satyam, Infosys, TCS and Wipro and Maruti Suzuki. Reliance Energy that lost 19.40% was the worst hit of the BSE-30. Other losers include Rel Comm, HUL, M&M, NTPC and Ranbaxy.

The market sentiment was hit by a dismal debut of Reliance Power and weak global markets. Based on an issue price of Rs. 450, Reliance Power ended with a sharp cut of over 17% on its maiden trading day. Further, annual inflation based on the WPI came in at 4.11% for the week ended 26 January 2008. The markets have broken crucial support levels today, i.e. 17,450 on the Sensex and 5,080 on the Nifty. It appears that the worst may be over for the Indian markets, we recommend investors to take small exposure to large caps.

Categories: Markets, Stocks