Markets close sharply lower; metals, financials, telecom drag

08 May 2009

The markets witnessed huge selling pressure in the second half and ended sharply lower on the last day of the week. The sell-off was seen in rate sensitives, metal, technology, power, oil & gas and telecom sectors. The benchmark indices shrugged off the positive global cues. The markets were volatile in the first half session.

Domestic funds continued to book profits in today's trade as well. Local traders were unwinding their weekly trade and turned cautious ahead of crucial election results next week. Pressure in midcap and smallcap was largely from local trades. The Nifty was finding strong support at 3600 on the downside and managed to close above the same level while the Sensex slipped below the 12000 mark.

Among the heavyweights, Wipro, ICICI Bank, BHEL, SBI, HDFC, Reliance Communication, Sterlite, Reliance Infrastructure and Tata Steel plunged 3-7%. Reliance Industries, Bharti, ONGC, NTPC, HDFC Bank and Infosys fell 0.8-2.8%.

The 30-share BSE Sensex touched an intraday low of 11,765.06, before closing 240.51 points or 1.98% lower at 11,876.43. The 50-share NSE Nifty fell 1.72% or 63.20 points, to settle at 3,620.70.

The markets, though, closed the week on a strong note; both indices gained 4.2% each this week. However, Dipan Mehta, Member of BSE and NSE, said he sees turbulence going forward.

"Not only will there be turbulence next week but even the following Monday (May 18) - when poll results would be out - will be the day to watch out for," Mehta said. "We are in for some volatile times. There is high implied volatility. A lot of market players are getting ready for volatility to arise in the coming few trading sessions."