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Weak Global Cues Drag Markets Lower

Tuesday, February 07, 2012, Indian market closing: Markets ended an extremely volatile session lower tracking weakness in global markets.

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Priyadarshini Dembla| 07-02-12E-mail Article to a Friend
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Priyadarshini Dembla is a research associate with Morningstar. She would like to hear from you, but she cannot provide individual-portfolio or financial-planning advice.

Weakness in global markets pulled down domestic indices. After moving steadily higher, markets slipped in red following jittery global cues. Equity market started off the day above the flat line however witnessing bouts of volatility slipped lower towards the second half post weak opening by European markets. Greece continued to be in the spotlight with party leaders set to resume talks to discuss another round of austerity measures. Market breadth was negative as on BSE 1,660 shares fell and 1,219 shares rose. 

The BSE Sensex touched a high of 17,832 during the day and a low of 17,582 before it closed 0.5% or 85 points lower at 17,707. The small cap stocks moved in line with the large cap stocks however it was the mid caps that underperformed both these. The BSE Mid-cap and BSE Small-cap indices fell 0.8% and 0.4% lower respectively. The S&P CNX Nifty too ended 0.5% or 27 points lower at 5,335 points.

Majority of the indices on the BSE sectoral space ended lower with a handful of gainers. The BSE Capital Goods index was the highest loser as the index heavyweights BHEL and L&T continue to decline. This was followed by the BSE Realty index which also corrected by 2%. The BSE Power and BSE Metal index fell by 2% and 1.85 respectively. On the contrary, BSE Oil & Gas index emerged as the top gainer which grew by 0.9% with RIL surging over 1%. The BSE Consumer Durables, BSE Bankex and BSE FMCG indices closed 0.6%, 0.6% and 0.3% higher respectively.

Among the BSE -30 stocks, 8 stocks grew while the others fell. The top five gainers were Reliance Industries, ITC, ONGC, ICICI Bank and TCS which grew by 1.4%, 1.4%, 1.3%, 1% and 0.6% respectively. On the other hand the top five losers were BHEL, Tata Steel, M&M, GAIL and DLF which fell by 4.2%, 3.3%, 2.9%, 2.7% and 2.75 respectively.   

As per the data released by SEBI, Foreign institutional investors (FIIs) were net buyers in equity to the tune of Rs 1,104 crores while they were net sellers in debt segment to the extent of Rs 133 crores.

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