Markets were trading flat on Friday afternoon after a 141-point fall seen between 1:00 pm IST and 1.07 pm IST trimmed gains made by benchmark indices in the morning. The BSE barometer Sensex was up 40.82 points at 20,351.56 points, while NSE’s Nifty was up 18.25 points at 6,054.55 points.
Market observers feel triggering of stop-losses might have led to the sharp fall. “Markets are seeing low volumes. This combined with shorting in index futures could have caused today’s slide,” said Sahil Kapoor, chief technical strategist, Edelweiss.
Experts warn that sell-off in developing markets is likely to continue. “The negative sentiment is pretty much in place so you can expect a lot more selling,” said Mark Mobius, executive chairman, Franklin Templeton, in a media interaction.
Among sectoral indices, BSE Metal (2.17%), BSE Realty (0.81%) and BSE Healthcare (1.32%) were the major gainers. Among individual stocks, Tata Steel (5.92%), Sesa Sterlite (2.81%) and Sun Pharmaceutical Laboratories (2.58%) were the major gainers.
Asian indices remained firm with the Nikkei up 2.17%. Hang Seng (1%), Kospi (0.77%), Straits Times (0.83%), Jakarta Composite (0.96%) and Shanghai Composite (0.56%) were the major gainers.