Indian equity indices extended losses for the seventh consecutive trading session on the back of heavy selling and increase in global crude prices. Markets opened the day on a positive gap, mirroring overnight gains from US markets, but mixed cues from Asian and Europe markets hampered market sentiments and ended the day on negative terrain.
The 30-share Sensex of Bombay Stock Exchange (BSE) lost 255.90 points, or 1.89%, ending the day at 13,262.90 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) shed 66.65 points, or 1.64%, closing the day at 4,008.25 points.
Dealers said that markets will remain volatile for the next few weeks as investor confidence was badly battered after the US financial sector problems worsened this week. Markets might see some positive movement once the global uncertainty settles down completely.
Ambreesh Baliga, VP, Karvy said, ?Investors will not face major risks. Since markets have fallen substantially in the last few days, further downfall, it seems, will be limited. Nifty may see a further downslide of 150-200 points.? The valuation looks good and investors should take call for the long term, he maintained.
The breadth of the market remained negative, as out of 2712 stocks traded on BSE, only 886 managed to advance. 1,740 stocks declined and 86 stocks remained unchanged. In the Sensex, seven stocks ended in green and 23 stocks in red.
Gopal Agrawal, head of equity, Mirae Asset said, ?At present, markets are driven by developments in the US economy and it is really difficult to take an immediate call. However, things are looking good on the national front; inflation is dipping, IIP numbers look better and oil prices are cooling off.?
All indices in the BSE Sectoral indices ended in red. Realty shares were worst performers, losing over 4%. Bank, metal, oil and gas, and capital goods stocks were major sufferers of the negative sentiment. On the other hand, foreign institutional investors (FII) continued their selling. Net sellers were worth Rs 1,064.17 crore. Domestic institutional investors were net buyers at Rs 948.93 crores, as per provisional figures furnished by the BSE.