Sensex dips on global worries
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April 19: The Sensex, Nifty, gold and silver all opened on heady highs but by noon they all took an about turn and slipped into the red as fears of a liquidity crunch set in following the raising of rates by the European Central Bank and China and sovereign debt concerns.
The Sensex was up over 200 points and then slipped as much and touched 300 points down intra-day. The most-active gold for June delivery MAUc1 on the Multi Commodity Excha-nge (MCX) was trading 0.09 per cent higher at Rs 21,590 per 10 grams at 2.50 pm, after hitting a record of Rs 21,606 earlier, according to Reuters.
Equities and bullion fell to profit booking which was the mood across global exchanges. The intra-day sudden fall was attributed to basked selling by some big institutions. Mr Ambareesh Baliga of Way2Wealth said the Asian markets that were positive “but not as high as ours slipped into the red on fears of tightening of liquidity particularly in the eruo zone. The European markets also opened in the red and after that the Sensex and the Nifty never recovered.
The Sensex closed down 29.65 points at 19,091 and the Nifty was down 95.45 points at 5,729.10. “This clearly shows the upward move is over,” said Mr Baliga. The Nifty has moved from 5,900 to 5,729 and the sentiment has been battered. Today’s fall means that any bounce back will be sold into. He feels that a good trigger could be the results of Reliance Industries and Tata Consultancy Services (TCS) but they are due on Thursday after trading hours and Friday is a market holiday.
Mr Jagannadham Thunu-guntla of SMC Capital said that the Infosys panic is still around and has affected all information technology stocks. “Globally too there is the profit booking mood,” he said.
Mr Hiren Dhakan of Bonanza Portfolio Ltd feels “the trend is bullish and the results front is good so it could be a positive week.” “The Indian markets will be all ears to the first official monsoon forecast from the IMD on Tuesday,” says Mr Amar Ambani, of IIFL. Technically, after a strong sell-off the Nifty managed to take support.
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