Markets continue to be volatile even with a curtailed week with three trading sessions. Monday’s as usual came as no big surprise with the indices registering its second biggest loss in value terms tanking by 950 points with the BSE Sensex breaking its January lows and moving below the 15K mark.
Markets attempted to recover in the other two trading sessions on positive cues from the global markets and move past the 15K mark once again which were foiled by sustained selling pressure at higher levels.
The indices continued its losing streak to close lower by 766 points or 4.8 per cent at 14,995 while the Nifty lost 170 points or 3.6 per cent to close at 4,574.
FII persisted to press the sell buttons to sell equity more than Rs 1300 crore in just three trading sessions. The derivatives side on the other hand attracted net inflows for the last week from the FII’s to the tune of Rs 2367 crore.
The Black Gold finally lost its winning streak to post a 10 per cent decline and move below the $100 mark. Technically crude rally seems to have exhausted and prices may cool off further.World markets
World markets swayed the US market way after the US Federal Reserve cut its benchmark interest rates by 75 bps points.
US markets rallied to post its biggest rise in five years and close higher for the week. Asian markets traded on a mixed note with Shanghai markets closing lower after China Bank raised its interest rates on rising inflation concerns. Nikkei closed marginally higher while Hang Seng lost close to 5 per cent.
Sectoral indices
The BSE sectoral indices continued to bore the brunt of the bear whip to close lower once again. All the BSE sectoral indices closed lower than the previous week persisting to lose more and more ground.
Even the oil & gas sector, which was on the positive side last week, could not bear the selling pressure.
OIL majors like RIL, Essar Oil and RPL dragged the BSE oil & gas index which lost 7 per cent for the week. Bankex lost 10 per cent for the week even after the Fed cut its interest rates by 75 bps.
Rising Domestic inflation concerns have blocked all expectations of a rate cut by the RBI. Metals too lost 9 per cent for the week even after a rate hike announced last week. Auto, IT, capital goods and reality too ended in the negative.Mid-cap action
Mounting pressures on the indices continued to take a huge toll on the mid-caps and small-caps. Both the sectoral indices lost 10.6 per cent and 8.50 per cent respectively on sustained selling pressure.
Hopes alive
Markets broke important supports at 4,550 and 15,300 levels last week moving below the lows made in January. Sensex moved south below the 15K mark after a span of seven months.
There is a clear lack of confidence amongst the investors who are wary to enter the markets at current levels. Even positive cues from the global markets have not been able to change the gears in the Indian stock markets.
All these factors have been in favour of the Bears who have maintained a strong hold on the markets. Technically markets may yet favour the Bears but their reign may be loosening and bulls might take charge at lower levels.