Thursday, 6 November 2008

Mkts lose ground after disappointing inflation nos.

What a volatile session this was. Early in the morning, predictably with the rest of the world, which had gone through a sell-off early in the day, we saw a gap-down opening. Within minutes the markets were down about 4%. The market then recovered quite sharply at about two o’clock perhaps on expectations that the inflation number would go to single digits. That was the whiff doing the rounds in the market throughout the morning. Then as the inflation number came in at 10.72% the market slipped once again. So, the end wasn’t good. But we have seen lots of topsy-turvy movements during the course of the day, and finally, Sensex closing 400 points lower at 9,700 and the Nifty too drifted down another 100 points after yesterday’s sell-off, and this time it is below 2,900. So, we have given up quite a bit of ground over the last two days about 8–9% on the Sensex and the Nifty. Yesterday, it was 5% and today about 3–3.5%.

Metals once again got singled out for punishment. We saw big sell-offs in SAIL and Tata Steel. Tata Motors had a big drubbing. Reliance is the big stock which is really putting the market down and other stocks like Bharti are not helping the index at all. Hence, at the end of two days of setback, the big question is how much deeper does this market have to get cut before it stabilises once again.

Source: Moneycontrol

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