Market Today

Unexpectedly, the first day of the week started very badly. The share market ends in RED today; Not very different from the last week at the Bombay Stock Exchange. The Bearish attack continued from the first day. The Sensex and Nifty opened very low continuing by Friday's trend and both the indices witnessed heavy selling. But then in the noon session the Sensex had a recovery of nearly 350 points and the Nifty 100 points. This situation did not cling on for a long time as again the markets slipped into the alert zone.

The markets in the United States of America were no different from Indian Stock trades. It fell badly on Friday. This could have been, as mentioned before, one of the reason for today's fall in the Indian Stock Markets. As the Inflation touched 11.05% last week the RBI would hike the rate especially CRR and Repo rate. Banks also to hike their lending rates and the inflation would continue to be at 11% till next few weeks as there is a pressure on companies due to commodities price hikes.

The Sensex nearly saw today's low at 14,163.45 but then recovered 130 points. It finally gave in and closed at 14,293.32 but down by 277.97 points or 1.91%. While the Nifty slipped down below 4300 mark, it recovered 41 points from today's low at 425.50. But just like the BSE Sensex it ended at 4266.40 down 81.15 points or 1.87%. Seems like all the traders at the Stock exchanges are learning more of subtraction than the all important addition! Another reason the market was down today was because of the Midcap and Smallcap stocks. Again the Advance/Decline ratio was too large. Only 512 shares advanced and nearly 2334 shares declined, while 281 shares were unchanged. The Midcap Index lost 3.60% or 217.20 points to settle at 5,815.23. Smallcap index was down by 3.53% or 216.36 points to settle at 7,136.30. Both the Midcap and Smallcap blew the pockets of investors of the Bombay Stock index and India stock index

Now for a look at the other sectors which suffered today to end in RED:
CAPITAL GOODS index down by 5.29% or 602.78 points at 10,797.01.
POWER INDEX slipped by 101.86 points or 4.01% at 2,437.98
FMCG SECTOR DOWN BY 1.41% to settle at 2,202.65[selling in United Breweries, Dabur India, Godrej etc.]
BANK SECTOR CRASHED 2.56% to settle at 6,630.58
PHARMA INDEX LOST 2.43% OR 105.16 points to settle at 4,220.24
OIL AND GAS FELL BY 2.63% OR 247.79 points settling at 9,172.10 [selling in many petroleum companies like RIL, GAIL, HPCL etc. But the gainers in this were ONGC, Cairn India and BPCL]

Fortunately the Information Technology sector index gained 0.68% to end at a not very high 4, 233.42 due to buying in HCL Tech, Wipro, Infosys, Satyam, Tech Mahindra and Patni Computers.

Brief at the Global Markets:
Asian markets closed in negative following weak US markets.
Nikkei -0.6%,
Shanghai Composite -2.5%
Hang Seng -0.13%,
Kospi -0.89%,
Straits Times -0.75% and
Taiwan Weighted -0.33%.

European markets were trading marginally in GREEN, FTSE 100 was up 0.53%, CAC 0.3% and DAX 0.4%

For a summary of today’s stock market, it was down due to crashing of MIDCAP and SMALLCAP stocks which led to the market to closing on a negative.