BUSINESS NEWS:-Sensex sell-off continues on weak global cues

MUMBAI: Indian markets ended deep in the red Friday as bears came out in the open following unexpected rise in jobless claims in the US and deficit scare in Europe. All the sectoral indices closed in the red, with realty, metals and capital goods being the worst hit.

Indices opened gap-down in line with other Asian peers and drifted lower. Attempts by bulls at a pullback near crucial support levels failed, as the selling continued. Analysts are of the view that in the short term indices may bounce back but the bearish phase will continue in the medium term.

“Market may have bottomed out for the day or for a few more days. However, it looks like we are in a bear market,” said Deepak Mohoni while speaking to ET Now.

PA Rajan, technical analyst, MF Global, speaking to ET Now, said the correction is not over and Nifty may slip to 3900 levels. “The correction is not over yet. Nifty is more volatile than other indices as its high-beta index. Nifty may find support at 4600 in the short-term but it may hit 3900 in the medium term,” Rajan added.

Bombay Stock Exchange’s Sensex ended the day at 15790.93, down 434.02 points or 2.68 per cent. The index fell to touch an intraday low of 15725.43.

National Stock Exchange’s Nifty ended at 4718.65, down 126.70 points or 2.61 per cent. The index fell below the psychological support of 4700 to touch an intraday low of 4692.35.

“Till we don’t see consolidation around support levels of 4540, Nifty is likely to slip lower and lower depending on the global economic situation. For positive momentum, Nifty should hold above 4960 levels,” said Bhavin Mehta, technical analyst, Reliance Money.

BSE Midcap Index was down 2.60 per cent and BSE Smallcap Index moved 3.25 per cent lower.

Amongst the sectoral indices, BSE Realty Index was down 4.36 per cent, BSE Metal Index fell 4.26 per cent and BSE PSU Index slipped 3.52 per cent.

Biggest Sensex losers were Hindalco Industries (-5.51%), Tata Steel (-4.65%), ONGC (-4.54%), Jaiprakash Associates (-4.46%) and Mahindra & Mahindra (-3.93%).

Tata Power (0.80%) was the lone index gainer.

Market breadth was negative on the BSE with 2368 declines and 487 advances.

Note: Indian markets will have a special 90-minute trading session Saturday, to enable the National Stock Exchange test an upgraded trading system. The trading in the cash and futures market will open at 11:00 am and close at 12:30 pm.