The markets opened with an upgap on the back of strong global cues. The US Federal Reserve announced that it would inject up to $200 billion of liquidity into strained credit markets, which helped boost sentiment abroad. However, post the morning session, the Indian markets started slipping to finally close on a flat note. This was probably due to the disappointing IIP numbers. Jan 08 Industrial growth was at 5.3% versus 11.6% in Jan 07.
While the Sensex was up 4.83 points or 0.03% at 16127.98, the Nifty was up 6.1 points or 0.13% to close at 4872.0. The broadmarket indices underperformed the benchmark indices as the BSE Midcap and Smallcap indices closed 1.19% and 0.32% lower respectively. Market breadth was negative as A/D ratio was 0.88:1 on the BSE. NSE cash turnover was Rs. 15,594crs. Vs. Rs.15,733crs. yesterday.
Sectorally, it was a mixed bag. The BSE IT and Metal indices lost in excess of 2%. The BSE Bankex, Oil & Gas, Heathcare and Realty were the major gainers. The top performers from the index pivotals included Grasim, Cipla, Rel Energy and ICICI Bank. The top losers included Tata Steel, Hindalco, DLF and SBI.
The upmove seen in the last two sessions fizzled out due to the disappointing IIP numbers. We continue with our strategy of going slow on positional long term investments till we see signs of a confirmed sustainable uptrend. Short term trading positions with strict stop losses can however be entered into to take advantage of any further rally.
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