The 30-share benchmark index, Sensex opened with a negative gap of 416 points at 18,247.03 mirroring weak global cues in early trades today. The index proceeded to trade weak throughout the day on account of aggressive selling pressure in front liners. Finally, the index touched an intraday low of 17,936.01, to close on a dismal note.
BSE Sensex plunged 523.67 points, or 2.81%, at 18,139.49, while the broad-based NSE Nifty closed at 5,322.55, down 161.35 points, or 2.94%.
Suresh Kumar Iyer, Technical Analyst, Asit C Mehta quipped that the market witnessed volatile sessions on back of weak global cues. Lack of buying by the investors was seen in the market.
He added that surprisingly, volume at Nifty soared to its highest in the past 12 days. Suresh added that it is difficult to predict future trends of the market seeing today`s volatile session.
He advised retail investors to adopt wait and watch policy and high networth individuals to maintain long position.
Vishwas Agarwal, Technical Analyst, said that it is important for BSE to remain above 18,150 level so as to sustain the upward movement. Also some accumulation and value buying of fundamentally robust stocks was seen in the market. He added that the weakening of global markets every other day disrupts the mood of Indian market. Vishwas added that all fundamentally strong stocks would slowly move northward. He expects the listing of Reliance Power to bring some pleasant surprises in the market.
Bhavesh Shah, head research, Asit C Mehta said that markets were down today (Feb. 6) due to weak global cues. Since there is no major event in the near future before Budget 2008 on Feb. 29, 2008, markets will continue to be driven by global markets. Today selling pressure was visible across the board.
According to Bhavesh, global market will determine trends of Indian markets on Thursday. He recommends investors to `wait and watch` for sometime.
U.S. stocks declined on Wednesday after Philadelphia Fed President Charles Plosser warned that the Federal Reserve remains vigilant on inflation, even as the economy slows.
On Wednesday, the Dow Jones industrial average fell 65.03 points, or 0.53%, to finish at 12,200.10. Nasdaq composite index lost 30.82 points, or 1.33%, to close at 2,278.75.
Crude oil prices fell on Wednesday (February 6), after the government reported unexpectedly large jumps in supplies of crude oil and gasoline and a surprise increase in stocks of heating oil.
Light sweet crude for March delivery fell USD 1.27 to settle at USD 87.14 a barrel on the New York Mercantile Exchange (NYMEX). March gasoline fell 2.48 cents to settle at USD 2.2399 a gallon. The retail gas prices slipped 0.1 cent overnight, to a national average of USD 2.976 a gallon.
Asian markets
Stocks of Japanese companies fell after they cut their outlook for earnings. Orix Corp. extended yesterday`s downfall, after the Japanese leasing company cut its profit forecast on rising credit risk.
Mazda Motor also fell in Tokyo, after it said a stronger yen will erode earnings in the current quarter. Japanese benchmark index Nikkei slipped 104.21 points, or 0.80%, to trade at 12,995.03.
Other markets in the region were closed on account of a holiday.
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