In the backdrop of Global weaknesses, Banking majors added fuel for selling spree.
Indian Equity markets butchered by weak global cues from overnight (US: DJIA lost 80.41 points or 0.52 percent and closed at 15,307.20). The comment of US Federal Reserve Chairman Ben Bernanke told Congress that the US central bank could slow down its asset purchase program in the next few months. The message do not cheered by market participant and speculated that it could lead to squeeze in Liquidity.
Indices opened weak and benchmark index of MCX-SX’s SX40 was trading at 11,808.84 down by about 55 points within 15 minutes of morning trade. Throughout the day one news after another provided enough fuel to drag the indices to 11,682.30 down by 178 points from the previous day’s close price.
Media major ZEE, Housing firm HDFC, Cement major ULTRATECH tried to provide some relief by holding on to green territory, but names like SBI and Larsen & Tubro from front liners and JPAssociates, Reality major DLF and ADAG group’s RELCAPITAL were in deep cut falling by more than 6% and extending losses to even 9%.
SBI results were disastrous, leaving aside on one or two variables earning showed miss on all the counts and stock was dumped by the participant. At the time of closing it traded at 2170.45 down by more than 7.7%, DLF traded at 211.65 down by 6.62%. JPAssociates were top Index looser in SX40, traded at 67.45 by losing 8%.
Selling was intensified in the 2nd half of the trade after SBI reported very bad numbers and neither Indices i.e. ‘SX40′ nor individual scrips were able to hold ground or recoup the loss.
MCDOWELL, SBI and SUNPHARMA were most active and highly traded counter on MCX-SX, SX40.
All in all it is a negative day of trading which saw huge selling across the board.