Wednesday, June 18, 2008

Post-Market Commentary Wednesday, June 18, 2008

Political worries pull market down

Bears used the ploy of weak European markets and deferral of a crucial UPA-Left coordination committee meeting on Indo-US nuclear deal scheduled today, to bring share prices down. The decline followed a range bound movement on the bourses for a better part of the day till early afternoon trade. News of deferral of the UPA-Left meet on nuclear deal hit the market in afternoon trade.

Banking and IT stocks bore the major brunt of selling. FMCG stocks rose on defensive buying.

Media reports had suggested that the government would try to persuade the communists in today's meeting to at least allow it to conclude negotiations with the International Atomic Energy Agency (IAEA), a crucial step in putting the deal into effect. The nuclear deal, if finalised, will meet some of India's energy needs.

The 30-share BSE Sensex lost 274.59 points or 1.75% at 15,422.31. The index shed 306.68 points at the days low of 15,390.22 hit at the fag end of the trading session. At the days high of 15,789.62, Sensex gained 92.72 points in early trade.

S&P CNX Nifty was down 70.6 points or 1.52% at 4582.40. Nifty June 2008 futures were at 4561.40, a discount of 21 points compared with the spot closing.

As per provisional data, foreign funds today sold shares worth a net Rs 435 crore. Domestic funds bought shares worth a net Rs 193.64 crore.

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