Old habits die hard. This proverb aptly suits the sensex. The reason is that the sensex showed a sign of weariness on Monday after a pull back rally. The upmove in the Indian key indices ended as profit booking set in after several days of gains. Equities opened lower on Monday owing to the weakness across the overseas markets. Apart from the healthcare segment, all the sectoral indices were in the red. Banks and technology stocks were the worst hit.
Bombay Stock Exchange’s Sensex fell 227.69 points to 9820.80. National Stock Exchange’s Nifty lost 61.8 points to 3042.85.
Wall Street witnessed huge losses on Friday. It was because the investors booked profits in the wake of the recent upward surge. What added to the gravity of the situation was the drop in the bank shares. The bank shares dropped after the bank executives indicated that March had been a tougher month for the industry than the previous two.
The Dow Jones industrial average fell 148.38 points, or 1.87 per cent, to 7,776.18. The Standard & Poor’s 500 Index shed 16.92 points, or 2.03 per cent, to 815.94 and the Nasdaq Composite Index slid 41.80 points, or 2.63 per cent, to 1,545.20.
Asian stocks also traded lower Monday. The Nikkei shed 1.5 per cent, Topix lost 1.93 per cent, Hang Seng fell 1.92 per cent and Straits Times slipped 1.83 per cent.
On the other hand, oil fell nearly $2. US crude traded down $1.96 to settle at $52.38 a barrel.
However, economists believe that there are certain stocks that people must watch out for. Reliance Industries is one of them. The reason being being that Reliance Industries will begin gas production from the Krishna Godavari (KG) basin in the next 24 to 48 hours. This production will open up a potentially vast revenue stream for the oil-to-yarn conglomerate and is estimated to add close to $2 billion to RIL’s bottomline at peak production levels.
L&T is a good stock because it is perceived to be the strongest and most serious contender for Satyam. L&T already possesses 12% stake in Satyam. Other stocks to watch out for are IBREL, HDIL, L&T, Sun Pharma, ACC, TVS Motors, and DLF.
US Treasury Secretary Timothy Geithner stated that subsequent to this bear market rally, some profit booking would set in. He also stated that this sharp decline in the markets should be used as an aggressive opportunity to build a long-term portfolio.
Therefore, people holding good stocks must not panic. A little patience is sure to give them huge rewards.
Benchmark Sensex tumbled by over 488 points and again dipped below the 10,000-mark. Retail investors dumped stocks due to melting global stock markets and dismal quarterly results by some corporates. The National Stock Exchange (NSE) index Nifty also tumbled by 147.05 points, or 4.13 per cent to 2,918.10.
Comment by Nida — March 31, 2009 @ 12:41 pm
Plunging global markets and high inflation number sent bulls packing from Dalal Street once again. The Sensex tumbled below the 10,000 level in a highly volatile trading session as an unexpected increase in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India.
Comment by Ankur — March 31, 2009 @ 12:43 pm
Bombay Stock Exchange’s Sensex fell 227.69 points to 9820.80. National Stock Exchange’s Nifty lost 61.8 points to 3042.85. Asian stocks also traded lower Monday. The Nikkei shed 1.5 per cent, Topix lost 1.93 per cent, Hang Seng fell 1.92 per cent and Straits Times slipped 1.83 per cent.
Comment by nida — April 1, 2009 @ 12:51 pm