Markets end winning streak on global cues

Written by Markets Bureau | Mumbai, Aug 27 | Updated: Aug 28 2008, 06:03am hrs
Key equity indices remained volatile throughout the trading session and ended a three-day winning streak on the back of weak global cues coupled with surging crude oil prices, selling pressure and expiry of August F&O contracts on Thursday. The 30-share Sensex of the Bombay Stock Exchange (BSE) lost 185.43 points or 1.28% before closing the day at 14,296.79 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) was down by 45.40 points or 1.05% and ended the day at 4,292.10 points.

The Sensex opened the day with 14,563.10 points which also remained intra-day high. It touched a low of 14,261.69 points to finally close at 14,296.79 points. Dealers in the market said that interest sensitive sectors such as realty and banking, which were the worst performing sectors in the BSE sectoral indices, witnessed heavy selling on fears that measures will be taken by the Reserve Bank of India (RBI) to control inflation. All sectors in the BSE sectoral indices ended the day on the negative terrain.

Deven Choksey, managing director, KR Choksey Securities said, Apart from expiry of F&O contracts, the overall scenario of the market was negative. I think that volumes in the market were also not that appealing. We assume that this is the final phase of high inflation and the situation will ease henceforth. Choksey further added that we might witness fresh inflows from the foreign institutional investors (FII) by October.

Overall, the breadth of the market remained negative. Out of 2,707 stocks traded on BSE, 1021 stocks were in green, 1583 stocks in red while 103 stocks remained unchanged. Only four stocks managed to advance while 26 stocks declined on the Sensex.