The Hindu Business Line : Markets slip further, Sensex sheds 91 points

WEAK global markets coupled with tensions about margin calls because of the bank holiday on Monday, saw the bourses slip further in the red. Stock markets opened weak and but for a small spell of recovery, remained tepid throughout the trading hours.

The Sensex shed a further 91.56 points to close at 6,156.78. It touched an intra-day low of 6,118.42. The 30-stock benchmark index has lost 4.86 per cent in the last two days of trade.

The Nifty closed lower by 28.5 points at 1,927.80. Trading today was extended by 30 minutes, as there was a technical problem at the NSE's F&O segment earlier in the morning.

Market experts say that there are technical concerns now as the index has closed well below the 6,250-mark. Sensex has shed more than 10 per cent from its peak of 6,954.86, which was reached on March 9.

Usually a loss of over 10 per cent from the highest levels of the index can imply an extended bear phase, according to technical analysts.

However, dealers are not willing to take a call on whether the markets are entering an extended bear phase or not.

"The lack of definite cues for lifting the market is a cause for concern. It could mean that the market could move in a range-bound manner for a long time, as has happened in the past," said the Chief Investment Officer of a mutual fund house.

Dr Reddy's, Zee Telefilms, Tata Steel and Reliance Energy dragged the Sensex down.

Banking stocks had a bad day at the bourses, with Bankex, the BSE's banking stocks index, losing 2.28 per cent during Monday's trade. Vijaya Bank lost 3.64 per cent to close at Rs. 58.30. Oriental Bank shed 2.18 per cent to end trade at Rs. 293.70, and Kotak Bank lost 2.17 per cent to close at Rs. 308.15.

Dealers say that there could be further weakness in the markets. Opening of trade on Tuesday would be with the cues from Wall Street's movement on Monday and the trajectory of Asian markets' opening movements.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
India, Pakistan agree to enhance economic, commercial cooperation

Petrol pumps observe strike as talks fail

Ministries still to agree on mode of divesting in OIL

EPFO may float SPV for investment in equities

Markets slip further, Sensex sheds 91 points

Lenders reluctant to fund gas-based power projects

Govt mulls controls on sting operations

No barriers for visually challenged Nafisa