20 Jun 2008 | 00:00
Markets witness a free fall
The
markets opened on a flattish note this morning on the back of mixed
global cues. However, post the announcement of the inflation numbers
the markets starting falling sharply and ended near the lows of the day.
Inflation
soared to a 13 year high of 11.05%, which was much higher than street
expectations. The surge in inflation was due to rise in retail fuel
prices. The government had raised retail fuel prices by about 10% on 4
June 2008 to help curb losses at its state-owned refiners, arising from
surging global crude oil prices. High inflation increased fears of a
tighter monetary policy. Selling was seen across all sectors.
While
the Sensex closed down 516.70 points or 3.42% at 14,571.29, the Nifty
lost 156.7 points or 3.48% at 4347.55. The broad market indices also
participated in the sell off as the BSE Midcap and Smallcap indices
lost 3.17% and 3.43% respectively. The market breadth was negative, as
A/D ratio was 1:5 on the BSE. NSE cash turnover was Rs.12,069 crs. Vs.
Rs.9,342.70 crs. yesterday.
All the BSE Sectoral indices ended
in the red. The BSE Oil & Gas shed the most as it lost 5%.
Ironically, the only gainer from the BSE -30 was oil and gas major,
ONGC. Losers from the Sensex pack included Rel Comm, Reliance,
Hindalco, Jaiprakash Associates and Rel Infra.
With the Nifty
breaking the 4500 support levels quite easily, the markets are in a
firm downtrend and seem to be headed lower in the days to come.
Traders
can use any pullbacks to initiate fresh shorts. With respect to fresh
Investment positions, it would be advisable to wait till the markets
make a confirmed bottom.Visit site at – http://investorline.co.in/
Newsroom - http://newsroom.investorline.co.in/
Learning Center- http://learning.investorline.co.in/
Mutual funds - http://mutualfunds.investorline.co.in/
Life Insurance - http://insurance.investorline.co.in/
Investor Journal - http://research.investorline.co.in/
Investor Forums- http://forums.investorline.co.in/
Markets witness a free fall
The
markets opened on a flattish note this morning on the back of mixed
global cues. However, post the announcement of the inflation numbers
the markets starting falling sharply and ended near the lows of the day.
Inflation
soared to a 13 year high of 11.05%, which was much higher than street
expectations. The surge in inflation was due to rise in retail fuel
prices. The government had raised retail fuel prices by about 10% on 4
June 2008 to help curb losses at its state-owned refiners, arising from
surging global crude oil prices. High inflation increased fears of a
tighter monetary policy. Selling was seen across all sectors.
While
the Sensex closed down 516.70 points or 3.42% at 14,571.29, the Nifty
lost 156.7 points or 3.48% at 4347.55. The broad market indices also
participated in the sell off as the BSE Midcap and Smallcap indices
lost 3.17% and 3.43% respectively. The market breadth was negative, as
A/D ratio was 1:5 on the BSE. NSE cash turnover was Rs.12,069 crs. Vs.
Rs.9,342.70 crs. yesterday.
All the BSE Sectoral indices ended
in the red. The BSE Oil & Gas shed the most as it lost 5%.
Ironically, the only gainer from the BSE -30 was oil and gas major,
ONGC. Losers from the Sensex pack included Rel Comm, Reliance,
Hindalco, Jaiprakash Associates and Rel Infra.
With the Nifty
breaking the 4500 support levels quite easily, the markets are in a
firm downtrend and seem to be headed lower in the days to come.
Traders
can use any pullbacks to initiate fresh shorts. With respect to fresh
Investment positions, it would be advisable to wait till the markets
make a confirmed bottom.Visit site at – http://investorline.co.in/
Newsroom - http://newsroom.investorline.co.in/
Learning Center- http://learning.investorline.co.in/
Mutual funds - http://mutualfunds.investorline.co.in/
Life Insurance - http://insurance.investorline.co.in/
Investor Journal - http://research.investorline.co.in/
Investor Forums- http://forums.investorline.co.in/
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