Sensex sheds 63 pts on selling pressure

Written by fe Bureau | Mumbai | Updated: Mar 1 2009, 04:24am hrs
Tough times
Persistent weakness in the global market due to the financial market crisis and weak economic indicators locally saw the domestic equity market ending the week on a negative note. Selling pressure gripped the domestic bourses soon after the government data showed India s gross domestic product (GDP) figures at 5.3% for the quarter ending December 2008 which was below the street expectation.

As a result the 30-share Sensex of the Bombay Stock Exchange (BSE) lost 63.25 points, or 0.71%, to close the day at 8,891.61 points. On the other hand, the broader S&P CNX Nifty of National Stock Exchange (NSE) ended the day at 2763.65 points down by 22 points, or 0.79%.

However, on a weekly basis the Sensex was marginally up by 48.40 points, while Nifty gained 27.20 points.

An analyst from the leading broking house said, Market remained under pressure through out the week due to weak global cues and expiry of the February derivative contracts. And poor GDP numbers announced on Friday further disappointed the market

According to the market experts even the outstanding open interest position in the March series doesnt give any indication for the street to cheer about. With the Nifty March derivative contracts witnessing major put concentration at 2,700, 2,200 and 2,500 strike price and major call concentration being observed at 2,900 and 2,800 strike price, analyst and traders expect the Nifty to remain subdued and move in the range of 2,500 and 2,900 points.

On Thursday, the Nifty February futures witnessed a roll over of 76%, which was last seen in the month of November 2008 with majority of the open interest position on the short side reflecting the general bearish trend in the market.

According to derivative experts, the ongoing slowdown in the construction and the manufacturing space have forced investors to take a very bearish view on cement, automobile, real estate, banking and finance sectors stocks.

Since the discount in the Nifty March futures was moving in the range of Rs 20- Rs 25, market analyst doesnt ruled out the possibility of some technical pull back in the Nifty.

Foreign Institutional Investors continued to sell heavily in both equity and derivative markets. On Thursday, FIIs were net sellers to the tune of Rs 252.43 crore in Index futures and Rs 158.42 crore in Nifty options. According to the provisional figures shown by the Bombay Stock Exchange (BSE), FIIs sold equities worth Rs 463.03 crore in the cash segment on Friday.