Markets took a nosedive and completely shattered in today’s trade as heavyweights have dragged benchmark indices lower. This is the third straight day that indices have been under pressure and they have lost all Monday’s gains. Oil & gas, power, realty, capital goods, telecom and banking stocks are real culprits for this fall.
Out markets have also taken a cue from global markets as credit concerns are not over yet in the US financial space. Asian and European markets also got burnt. Sheshadri Bharatan of Dawnay Day AV Financial Services said the market is taking its cues from the global markets and added that the impact of the Fannie Mae and Freddie Mac bailout is yet to be felt in the credit system and the US markets. He sees the support for Nifty at 4,250 at this point in time. Reliance Industries has played a significant role in today’s fall. It closed below Rs 2000 for the first time since July 16. The stock fell 4.13%, to settle at Rs 1997.60 while it slipped over 16% since August 16, 2008. Reliance lost over Rs 1,88,000 crore in its market cap. It added nearly 50 points to this fall. Bharatan feels the Reliance stock at around the Rs 2,000 level is a good buy. Other draggers include Bharti Airtel, ONGC, ICICI Bank and L&T, which fell 4.4%, 3.82%, 2.01% and 1.82%, respectively. The Sensex plunged by 338.32 points or 2.31%, to settle at 14,324.29 and the Nifty ended below 4300 mark. It fell 109.95 points or 2.5%, to end at 4,290.30. Only two stocks out of Sensex 30 and Nifty 50 managed to finish in green. Among the frontrunners, Suzlon Energy crashed 6.68%, HCL Technologies -4.59%, Zee Entertainment -4.57%, Bharti Airtel -4.40%, Reliance Infrastructure -4.15%, Reliance Industries -4.13%, ONGC -3.82% and Tata Power -3.53%. However, Tata Motors, Ranbaxy Labs and PNG were gainers. Indian rupee has depreciated over 1% to 45.57 to a dollar. Sanju Verma, Executive Director at HDFC Securities expects rupee not to fall below 46-47 to a dollar. Peter Redward, Head of Rates Research for Emerging Asia, Barclays Capital said that if the dollar continues to strengthen, then rupee may touch 47- 47.50 to a dollar by year-end. He feels that the RBI may lag behind the other Asian Central Banks with respect to monetary policy easing. She feels that once regulatory risk comes down, markets will inch up to 4600 levels. She expects markets to break 4500-4600 levels on positive news. She said that Indian markets outperformed most of the global markets for the last two months. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
