Sensex ends 200 points lower on weak global cues; banks dip

21 Oct 2009

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The Nifty closed the session below the 5,100 mark on the back of profit booking as well as weak global cues. It was volatile throughout the day but witnessed huge selling pressure in the last one hour of the trade.

The sell-off was seen in financial, FMCG, steel, auto, oil & gas, cement, pharma and select power companies' shares while buying in technology stocks and Bharti Airtel capped the losses to some extent. Airline stocks were buzzing today while sugar stocks dipped on profit booking.

On the global front, European markets were down 0.7-1.2% and the US index futures fell over 0.5%, at the time of writing this report. Asian markets also ended 0.3-0.7% lower.

The 50-share NSE Nifty touched an intraday low of 5051.65, before closing at 5,063.60 points, down 0.99% or 50.85 points. The 30-share BSE Sensex slipped below the 17,000 mark in the last few minutes of trade, before finishing the trade at 17,009.17, down 213.84 points or 1.24%.

Nandan Chakraborty, Head of Research at Enam Securities expected many negative surprises in Q1 CY10 with the key contributors being interest rates and taxation. He further said the markets may to go through a very volatile phase on the back of global factors.

He saw markets trading highly volatility over the short-term. "There is lack of the typical indicators which are pointing towards peaking out of the index." According to him, the ongoing gas tussle between Reliance Industries-Reliance Natural Resources, interest rates moves, uncertainty over earnings and the dollar movement as factors which could weigh markets down.

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