Nifty breaks 5800, broader markets dip

Markets plunged in the last leg of trade due to widespread sell-off across the board. The Sensex fell 454 points, to 19,242 and the Nifty slumped 137 points, to 5767.

The broader markets were beaten down badly on margin-deficit selling and recent furore by SEBI on stock price rigging. The midcap index plunged 4.3% and smallcap index was off 6%. Alex Mathews, Research Head, Geojit BNP Paribas Financial Services said, "Selling pressure in broader market stocks may continue because they have lost major technical support; the rebound may happen only after one or two weeks."

The frenzy in the markets was also set off due to global concerns and it will be difficult for markets to make fresh highs in December. Mathews added, "Global cues are negative, and there are concerns stemming from Eurozone and United States. The crisis may spill over in Europe after the latest development in Hungary. Inflation also remains a concern in China, which may spark further rate hike. Do not expect the Nifty to scale beyond 6300."

The Asian markets also ended mixed. Japan's Nikkei Stock Average was up 0.5%, South Korea's Seoul Composite rose 1.7%. Hong Kong's Hang Sang Index was higher by 0.3%, Taiwan's main index rose 0.5%. However, the Shanghai Composite index was off 1.3% on rate hike concerns. In Europe the markets were off to a good start on anticipation of interest-rate decision by Bank of England.

Inflation numbers continued to play spoilsport on the Indian markets. Food price index rose 8.69%, while the fuel price index climbed 9.99% year on year for November 27. RBI Deputy Governor said that commodity prices will make inflation management difficult.

Consumer Durables index dipped sharply, down 6.2%. Gitanjali Gems dipped 20%. VIP Industries slumped 11.7%, and Titan Industries plunged 6.2%.

Realty and auto index were also under pressure, down 4.6% and 3.7% respectively. Sunteck Realty lost 20%, Ackruti City fell 9.4% and  Indiabulls Real Estate declined 6.2%. From the auto space, Amtek auto dipped 14.8%, Ashok Leyland and Exide industries was down by 5%.

The IT index emerged as a defensive bet and managed to stay afloat. Wipro and Infosys surged almost 1% each.

Reliance Infra declined 6.2%, the top loser on Sensex, Reliance Communication was down 5.8%, and Cipla dipped 5.5%. Only 3 components on the Sensex were trading in the green-Infosys, Wipro and ITC.

Market breadth was negative: for 2157 declining stocks, only 729 stocks advanced.