Monday, June 14, 2010

Eurozone haunts the market again

The domino effect of the Eurozone crisis continued to haunt Dalal Street for the second consecutive day.

On Tuesday, the Indian markets saw a rise in the first half of the trade but eventually ended the session in the red with the BSE sensex down nearly 1%, or 164 points, at 16,617. On the NSE, the nifty lost 47 points to close below the psychologically important 5K mark again, at 4,987.

For the last few days Eurozone debt worries and fuel price hike in the domestic front dominated investor sentiments. Investors are now pinning their hopes on a good monsoon which may help stabilise the market situation to a certain extent, market players said.

"The day's weakness late in the session proved again that there is no conviction among investors on Dalal Street,'' said a head of a local investment advisory firm. So for Wednesday, cautious market players are expecting another volatile session with a southward bias.

Foreign funds continued to sell with the BSE data showing a net outflow of Rs 243 crore.

Domestic funds, however, remained net buyers at Rs 41 crore. In Tuesday's market, only FMCG stocks, considered one of the defensive sectors in case of any economic weakness, showed an upmove. On the other hand, real estate, metals and telecom stocks were badly hit.

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