Monday, March 7, 2011

Sensex ends 264 points lower; auto, banks, realty down

MUMBAI: Indian markets ended in the red but off day’s lows as investors bought frontline stocks available near support levels. Concerns of interest rate hike due to inflationary pressure after spike in crude oil prices saw bears hammering stocks from rate sensitive sectors.

Fears of political instability back home due to fall-out between DMK and UPA government on seat-sharing hurt sentiments. According to reports, the talks between both the parties have resumed and some amicable solution with out ahead of forthcoming Tamil Nadu Assembly elections.

According to market experts the weakness is likely to continue in the near term due to weak economic data and political developments back home.

"On the international front, the events in Egypt, Tunisia, Libya and other Middle East countries have increased the Indian crude oil basket again to a $108 mark indicating a red flag on equity markets world over.
Bombay Stock Exchange's Sensex ended at 18222.67, down 263.78 points or 1.43 per cent. The 30-share index touched a low of 18058.71 and high of 18361.65 intraday.

National Stock Exchange’s Nifty ended at 5463.15, down 75.60 points or 1.36 per cent. The broader index touched a low of 5408.45 and high of 5491.25 in today’s trade.

BSE Midcap Index was down 1.41per cent and BSE Smallcap Index declined 1.43 per cent.
Amongst the sectoral indices, BSE Auto Index fell 2.55 per cent, BSE Capital Goods Index was down 2.36 per cent, BSE Realty Index moved 1.66 per cent lower and BSE Bankex declined 1.60 per cent.

To add to this, the fallout of the DMK withdrawal would again keep pressure on the Indian markets. With the political risks rising we believe that the government machinery will be less inclined to take decision, the direct of impact of which will be on a lot of infrastructure projects that needs green signals.

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