Nifty ends Oct series at 4750; rate sensitives, metals drag
29 Oct 2009
The Nifty witnessed huge selling pressure on the expiry day and closed the session below the 4,750 level on huge turnover. Post European opening, the markets recovered a bit but fell sharply in the last half an hour of the trade. The Sensex also tested the 16,000 mark during the day. Fall in Asian and US markets also weighed on the markets.
Rate sensitive, infrastructure, metal, telecommunication and select technology counters kept the markets lower throughout the session. Heavyweight Reliance Industries was down over 2% and exerted preessure on the Nifty in the late trade. However, ONGC, M&M (on strong Q2 numbers), HUL, HDFC, Ranbaxy Labs, BPCL, Sun Pharma, ITC and Idea Cellular bucked the trend.
The market continued its downtrend for the fourth consecutive day. The 30-share BSE Sensex touched a day's low of 15,993.83, before closing at 16,052.72, down 230.77 points or 1.42%. The 50-share NSE Nifty shut shop at 4750.55, down 1.57% or 75.60 points, after seeing day's low of 4738.40. These indices tumbled 4.51% and 4.93% in four days while declined 4.34% and 4.73% in October series, respectively. The Nifty November future ended with 28.45 points premium, as per provisional data.
Independent Analyst, K Ramchandran said the markets have significantly corrected from the top and the reasons were very clear, the market had run away far ahead of the fundamentals. "Although the results are not very bad but except that it's fallen short of expectations which were any way exaggerated in the first place. So, as far as the fundamentals are concerned they are still on a pretty good footing and I don't see the markets correcting too much from these levels. The correction has been very healthy and it's happened pretty fast. So, from hereon the market should start factoring in the fairly satisfactory results and should move on steadily upwards."
The markets clocked total turnover of Rs 1,43,605.92 crore on expiry day and F&O turnover remained above the Rs 1 lakh crore mark for the third day in a row. Total turnover included Rs 20,604.15 crore from the NSE cash segment, Rs 1,18,012.74 crore from the NSE F&O and the balance Rs 4,989.03 crore from the BSE cash segment.
The market breadth was negative; about 1,000 shares advanced while 1,983 shares declined on the BSE. Nearly 780 shares remained unchanged.
Global Cues:
Asian markets slipped further. Taiwan Weighted and Jakarta fell 3-3.6%. Shanghai, Hang Seng, Nikkei and Kospi lost 2% each. Straits Times was down 1%.
