Mar 10, 2008

Indian Markets on 7th March 2008 - Markets witness a black Friday

Markets witness a black Friday

The markets opened with deep losses on the back of weak global cues and continued to drift lower. The recovery seen in the afternoon session helped stem the losses as the main indices closed off the lows of the day. The Sensex closed down 566.56 points or 3.42% at 15,975.52, while the Nifty lost 149.80 points or 3.04% to close at 4771.60. Broadmarket indices underperformed the frontline indices as the BSE Midcap and Smallcap index were down 4.35% and 4.55% respectively. The market breadth was pathetic, as A/D ratio was 1:8 on the BSE. NSE cash turnover was Rs.14958.33cr vs. Rs. 12086.97cr on Wednesday.

All the BSE Sectoral indices ended in the red. The BSE Realty was the worst hit as it lost 6.64%. It was followed by the BSE Power that lost 5.57%. Gainers from the index pivotals included Rel Comm, HUL and Bharti Airtel only. Major losers from the BSE-30 included Rel Energy, Bajaj Auto, ICICI Bank and L&T.

The pullback that was seen in the previous session could not sustain as markets once again came under the control of the bears. We recommend avoiding any fresh long exposure till a new uptrend develops. Markets could correct at least another 5-10% in the coming sessions.


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