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Sensex drops 2.2 pct tailing global rout

February 20, 2009

INDIA-BUDGETTaking cues from weak global markets, our benchmark index ended the last trading session of the week with losses of 2.2 percent, its lowest close in a month.

The Sensex closed at 8843, pulled down by over 3 percent losses in Reliance Industries and a 7 percent slide in ICICI Bank.

The sectoral picture looked bleak as well with all sectors closing in the negative. The bankex led the pack with losses of 3.5 percent and was closely followed by the IT and metal indices which ended down 2.6 percent each.

Shares in Satyam ended 1.7 percent lower with volumes of 14.3 million shares on the BSE. Late on Thursday, the firm was given approval to bring on board a strategic investor.

Addressing the concerns of a worsening economy, the finance minister said today that workers may have to accept pay cuts if necessary to protect their jobs.

Adding to the domestic gloom is the fear of a deepening recession in the U.S. Do you think the markets have the potential to break free and notch gains when they open on Tuesday after an extended weekend?

Comments

There is no comeback for markets in imminent future.Industrial production will continue to show a dip until 4Q 2009.The government makes a bravo week after week on falling inflation.But what about falling production and dwindling exports?India is now entering a critical phase on eve of general elections.Imagine a situation if there is a verdict of “hung” parliament.Are we ready for a National government?There shall be an ambiguity about economic policies of a National government.
The markets are unlikely to rebound till FIIs return.Markets are prone to fall if more painful news unfolds.
Enter at 8300 and sell at 9200?

Posted by A.Kapoor | Report as abusive
 

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