Markets butchered ahead of inflation nos.

21 Aug 2008 | 00:00



Markets butchered ahead of inflation nos.



Markets
crashed ahead of the inflation numbers. Interest rate sensitives and
infrastructure stocks were among the most affected along with Oil &
Gas, Technology and Metal stocks. Sell off in European and Asian
markets also fueled the negative sentiments.

While the Sensex lost 434.50 points or 2.96% at 14,243.73, the Nifty shed
131.9
points or 2.99% at 4283.85. The broad market indices also ended lower
as the BSE Midcap and Smallcap index lost 2.04% and 1.83% respectively.
Market
breadth was weak, as A/D ratio was about 0.38:1 on the BSE. Turnover on
the NSE for Thursday was Rs.8581crs. versus Rs.9200 cr on Wednesday.

All
the sectoral indices ended lower. The top losers were the BSE Bankex,
Realty, Power and Capital Goods indices. Ranbaxy was the only major
gainer from the BSE-30. The major losers from the Sensex pack included
SBI, HDFC bank, NTPC, DLF, Rel Infra and ICICI bank.

With the
markets once again trending lower and the Nifty unable to hold the 4300
levels, it now seems that the Nifty could soon test the 4200 supports.
We recommend a go slow approach on fresh long positions till we see signs of strength.

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