Indian markets ended near 3-month lows on Tuesday, reacting to fears over a widening debt crisis in Europe and rising hostility between South and North Korea. Stocks from metals, capital goods and banks were amongst the worst beaten sectors.
Equities opened gap-down on reports that North Korea was readying its military against any action by South Korea and the US. The fall was triggered further by negative opening of Europe which led to the benchmarks slipping below crucial support levels.
National Stock Exchange’s Nifty ended at 4806.75, down 137.20 points or 2.78 per cent. The index breached the crucial support of 4800 and touched an intraday low of 4786.45.
Bombay Stock Exchange’s Sensex closed at 16,022.48, down 447.07 points or 2.71 per cent. The 30-share index fell below 16,000 to touch an intra-day low of 15,960.15.
“Breaching 4,800 is not a comfortable sign. Given the negative cues from across the globe, there is a good possibility of 200 points fall on Nifty. In the short term, the market looks over-sold and we may see a bout of profit booking before the May F&O expiry,” said Anu Jain, Vice President, IIFL Private Wealth Management, India Infoline.
The BSE Midcap Index plunged 3 per cent and BSE Smallcap Index fell 3.43 per cent.
Amongst the sectoral indices, BSE Metal Index fell 5.10 per cent, BSE Capital Goods Index declined 3.09 per cent and BSE Bankex fell 2.62 per cent.
“Most traders are short on the market and they should partially cover their positions, whereas investors must identity value stocks and start buying in small quantities on dips in next 15-30 days,” Jain said.
Reliance Communications (-6.32%), Hindalco (-5.43%), Tata Motors (-4.66%), Sterlite Industries (-4.49%), and Tata Steel (-4.45%) were amongst the top Sensex losers.
Cipla (0.05%) was the only gainer.
Market breadth was negative on the BSE with 1210 losers against 115 gainers.
Europe continued to reel and the US markets are also seen opening sharply lower. At 4:30 pm IST, Dow Jones futures was down 2.11 per cent, S&P 500 futures fell 2.44 per cent lower and Nasdaq 100 declined 2.06 per cent.
Equities opened gap-down on reports that North Korea was readying its military against any action by South Korea and the US. The fall was triggered further by negative opening of Europe which led to the benchmarks slipping below crucial support levels.
National Stock Exchange’s Nifty ended at 4806.75, down 137.20 points or 2.78 per cent. The index breached the crucial support of 4800 and touched an intraday low of 4786.45.
Bombay Stock Exchange’s Sensex closed at 16,022.48, down 447.07 points or 2.71 per cent. The 30-share index fell below 16,000 to touch an intra-day low of 15,960.15.
“Breaching 4,800 is not a comfortable sign. Given the negative cues from across the globe, there is a good possibility of 200 points fall on Nifty. In the short term, the market looks over-sold and we may see a bout of profit booking before the May F&O expiry,” said Anu Jain, Vice President, IIFL Private Wealth Management, India Infoline.
The BSE Midcap Index plunged 3 per cent and BSE Smallcap Index fell 3.43 per cent.
Amongst the sectoral indices, BSE Metal Index fell 5.10 per cent, BSE Capital Goods Index declined 3.09 per cent and BSE Bankex fell 2.62 per cent.
“Most traders are short on the market and they should partially cover their positions, whereas investors must identity value stocks and start buying in small quantities on dips in next 15-30 days,” Jain said.
Reliance Communications (-6.32%), Hindalco (-5.43%), Tata Motors (-4.66%), Sterlite Industries (-4.49%), and Tata Steel (-4.45%) were amongst the top Sensex losers.
Cipla (0.05%) was the only gainer.
Market breadth was negative on the BSE with 1210 losers against 115 gainers.
Europe continued to reel and the US markets are also seen opening sharply lower. At 4:30 pm IST, Dow Jones futures was down 2.11 per cent, S&P 500 futures fell 2.44 per cent lower and Nasdaq 100 declined 2.06 per cent.
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