Markets continued to trade lower after making gap down opening following weak global cues and reports of telecom probe.
Nifty opened around in the red 5,530 and touched a high of 5,568 briefly in the afternoon session but selling pressure intensified on buzz of telecom probe against Textile Minister Dayanidhi Maran and Anil Ambani. The S&P CNX Nifty was down 44 points, at 5,547 and the benchmark Sensex was down 131 points, at 18, 189 at 14:45 hrs.
Analysts said that the markets were trading with a bearish bias as volumes were weak and Advance Decline ratio was ibad. Devangshu Datta, Technical Analyst said that Nifty had Support at 5520 and resistance at 5575.
Markets were weak today as investigations in the 2G telecom probe resurfaced causing investors to turn to the sidelines. The Central Bureau of Investigation (CBI) commenced its preliminary investigation against Dayanidhi Maran who was the telecom minister between 2004 and 2007, for favouring Malaysian firm Maxis Communication for controlling stake in Aircel in return for investments in Maran’s family business. Sun TV which is owned by Maran’s brother plummeted 33% and Spicejet also declined 17%.
Also Anil Dhirubhai Ambani Group (ADAG) owned shares dived in the afternoon session following reports that CBI will pass an order on plea to probe Anil Ambani around 4:00 pm. Reliance Communication was down 4.7%, Reliance Infrastructure slipped 5.1%, Reliance Capital gave up 2.8%, Reliance Power fell 2.8%, Reliance Broadcast Network was down 4.6% and Reliance Mediaworks was down 6.4%.