Markets witness a sell-off ahead of inflation nos.

28 Aug 2008 | 18:13

Markets witness a sell-off ahead of inflation nos. Markets witnessed a sharp correction in last 45 minutes of trade and ended near the lows of the day. It was derivative expiry day and inflation concerns kept the markets nervous in the second half of session. While the Sensex declined by 248.45 points or 1.74% to close at 14,048.34, the Nifty lost 78.1pts or 1.82% to close at 4214.0. The broad market indices too ended lower as the BSE Midcap and BSE Smallcap indices lost 1.36% and 1.13% respectively. Market breadth was negative as A/D ratio was 0.52:1 on the BSE. Turnover on the NSE for Thursday was Rs.13,071crs. Vs. Rs.8769crs. on Wednesday. All the sectoral indices ended lower. The top losers were the Oil and Gas, Capital Goods, Metals and Bankex indices. The indices that lost the least were the Auto, Consumer durables, Healthcare and FMCG indices. The top gainers from the Sensex were Maruti, Satyam, Ranbaxy and Tata Power. The losers from the Sensex pack included RIL, Rel Infra, BHEL, TCS and RCom. With the markets continuing to fall, the important support levels of 4150-4190 on the Nifty will be under focus. It is important that the markets find support at these levels; else we could see a further sell-off and probably a testing of the July 08 lows. We continue with our strategy of adopting a go slow approach on fresh long positions till we see evidence of a new uptrend.

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