Market View :

Worldwide selling this time took a heavy toll on the Indian bourses with the indices tanking to some heavy selling pressure. Sensex started off losing 200 points in the opening minutes of trades and did attempt to gain positive momentum. But sustained selling pressure continued to mount in the markets taking the indices lower south. The indices could not manage to gain strength as selling pressure mostly by FII’s intensified in the post lunch session. The BSE index recorded its 3rd worst single day fall losing more than 700 points for the day closing below the 19K mark at 18602. Nifty too ended up on the losing side closing at 5561 a loss of 219 points.All the sectoral indices took a heavy beating on heavy selling pressure with most of them losing more than 5% each. Metals and Power stocks were the worst hit taking a hit of 6% for the day. Momentum stocks in the power sector like REL, Neyveli Lignite, Power Grid & NTPC lost heavy ground. PSU refinery stocks which were the talk of the town last week too tanked on profit booking. Even mid-caps and small-caps which have been rising since the past several days took a beating to lose apprx 4% each. Market breadth was in the ratio of 1:3. FII’s were heavy sellers in the equity markets selling stock worth Rs. 2007 crs as per provisional data & had net outflows in the F&O segment as well for Rs. 2187 crs. Domestic Institutions were on the opposite side being net buyers in the equity segment for Rs. 630 crs.FII selling in the past 2 days have been the major reason for the Sensex correcting sharply. The benchmark index has lost more than 1000 points in the last 2 days and is currently placed at their medium term support levels at 18600 & 5500. Negative cues from the global markets, especially Asian markets have finally had an impact on the Indian markets as well. FII’s have been selling in most emerging markets like China & India. The correction has been fast and taken most people by surprise. The support levels mentioned above are strong support areas and markets could take support at these levels. Accumulate stocks at lower levels.