Indian bourses extended the losses for the second consecutive trading session on the back of weak cues from global markets. Improved industrial production numbers could not prevent the market slide, which witnessed huge volatility and intense selling pressure throughout the board.
The 30-share Sensex of the Bombay Stock Exchange (BSE) lost 303.36 points, or 3.08%, and closed the day at 9,536.33 points. Dealers in the market say the domestic markets continued their southward journey throughout the day, as investors feared that the macro-economic situation could get worse in the coming months. Retail investors also took premeditated steps to book their position ahead of the state elections starting from next week.
The broader S&P CNX Nifty of National Stock Exchange (NSE) fell 90.20 points, or 3.07%, and ended the day at 2,848.45 points. IIP figures rose to 4.8% in September 2008 much higher than 1.4% rise in August 2008. An analyst from the leading fund house said, ?Due to the weak Asian markets, better than expected IIP data domestic markets remained unstable. However, due to the current global meltdown and credit crunch would weigh on the local economy, the gains could not be sustained. Macro pictures also look better after continous fall in the commodity prices.?
Again all the sectors in the BSE Sectoral indices ended the day with huge loses, with Realty and Banking being the worst performers of the day. Dealers in the market said, ?There is some more pain remaining in the market and it is difficult for any bounce-back to sustain at this level. Apart from that selling pressure by the retail investors gives a sense that they are not convinced and want to keep selling their stocks after a single upward rally.?
The breadth of the market remained negative during the trading session as out of 2,595 stocks traded on BSE, only 818 stocks advanced, 1,701 stocks declined and 76 remained unchanged. In Sensex only 2 stocks ended with gain and remaining 28 stocks ended the day in red.