Markets are expected to end on a weak note due to wide spread sell-off in the broader markets. The Sensex opened in the red and remained in the negative hobbled by global uncertainties and thin volumes as the year approaches end. The Sensex has fallen 474 points to 19,216 and the Nifty has declined 143 points to 5760.
The frenzy in the markets is set off due to global concerns and it will be difficult for markets to make fresh highs in December. Alex Mathews, Research Head, Geojit BNP Paribas Financial Services said, "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 10%, and Titan Industries plunged
6.4%.
Realty and auto shares were also under pressure, down 3.4% each. Sunteck Realty lost 20%, Ackruti City fell 8.9% and Orbit Corporation
declined 5.7%. From the auto space, Amtek auto dipped 13%, Ashok Leyland and Exide industries was down 5.4% each.
IT index emerged as a defensive bet and managed to hold the gains. Wipro and Infosys surged almost 1% each.
Reliance Communication was the top loser on Sensex, down 6.1%, Cipla dipped 5.3% and Hindalco declined 4.5%. Only 3 components
on the Sensex were trading in the red Infosys, Wipro and ITC.
From the broader market space midcap index dipped 4.2%, smallcap index also dropped over 5% on margin deficit selling and recent furore by SEBI on stock price rigging.
