After yesterday's rollercoaster ride, the markets once again witnessed same volatile ride today. SEBI?s regulation to limit derivative instruments like P-Notes continued to haunt the indices. The markets today recorded its second biggest fall of over 700 points after the initial rally of 500 points in the morning. However, the whole market mood turned after mid session as it pared all the gains as it slipped into the negative terrain with intense selling pressure witnessed across the board. Indices saw some panic selling which saw a free fall in the red zone with rumors floating in the market that margin calls may be triggered and that the NSE would increase margin requirements. But NSE declined it saying there was nothing like this. Rumours of political uncertainty also surfaced saying that the PM would resign which only compounded the fall.
We also feel that the FII?s preferred to reduce their positions in the form of P notes because of no tax benefits after converting to hedge funds which saw some heavy selling. We can only assume that the FII?s have been the seller on the basis of the provisional data which stated it as a seller to tune of Rs 1776 cr. All sectors ended in deep red, some selective stocks in IT and Consumer Durables were able to close in green. Power and Banking stocks were hit badly. Even the mid and small caps ended with losses. Asian markets ended the mixed while Europe was in red.
Sensex ended the day down by 717 points at 17998. The major losers were ACC (-12.53%), REL (-12.13%), SBI (-10%) and Bharti Airtel (-9%) while the major gainers were Wipro (+1.87%), TCS (+1.27%), Dr Reddy (+1.12%) and Satyam (+1%).
We also feel that the FII?s preferred to reduce their positions in the form of P notes because of no tax benefits after converting to hedge funds which saw some heavy selling. We can only assume that the FII?s have been the seller on the basis of the provisional data which stated it as a seller to tune of Rs 1776 cr. All sectors ended in deep red, some selective stocks in IT and Consumer Durables were able to close in green. Power and Banking stocks were hit badly. Even the mid and small caps ended with losses. Asian markets ended the mixed while Europe was in red.
Sensex ended the day down by 717 points at 17998. The major losers were ACC (-12.53%), REL (-12.13%), SBI (-10%) and Bharti Airtel (-9%) while the major gainers were Wipro (+1.87%), TCS (+1.27%), Dr Reddy (+1.12%) and Satyam (+1%).
