Thursday, November 6, 2008

Markets crash again on inflation news

The markets have drifted lower again, after showing smart recovery, due to news of an increase in the inflation numbers. It stood at 10.72% for the week ended October 25 as against 10.68% during the earlier week.

Reliance Industries, Bharti Airtel, Infosys, SBI, Tata Steel, Sterlite Industries, ONGC, HDFC Bank, ICICI Bank, HDFC, SAIL and Tata Motors are dragging the frontline indices.

The Nifty closed below 3000 mark and the Sensex slipped below 10,000 level. Metal stocks led this crash followed by oil, telecom, technology, banking and auto stocks. Midcap and small cap stocks were also under pressure.

Frontline indices had opened with huge gap down and remained weak till the afternoon. After 1:30 pm, indices had started recovery and was near to Wednesday's close, but more than expected increase in Inflation numbers pushed the markets sharply lower again.

The Sensex closed at 9746, down 373 points and the Nifty fell 102 points to 2,892, (provisional).

Inflation came in at 10.72% for the week ended October 25 as against 10.68% in previous week. This was more than expectations, as CNBC-TV18 was estimating inflation at 10.45%.

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