Mumbai: It was an extremely volatile session for the markets on Thursday. They closed deep in the red after getting off to a robust start.
The indices slipped in late trade despite encouraging cues from global cues.
The Sensex ended the day at 17221 down at 372 points.
The Nifty also did not end very well, closing the trade 169 points down at 5033.
The midcaps also fell by 236 points, ending the day at 7128.
The market breath has turned negative, favouring the declining shares...
Global markets continue to ride the rise due to the cut in fed rates..
Meanwhile, Asian stocks rose for a second day on speculation. Regulators will act to support financial companies and ease tightness in credit markets.
“I think that apart from the fundamental issue, there is a tech issue that when the markets go into volatility, what are the exchanges going to do about handling it? They went the wrong way by increasing the margins for buying when people wanted to come and buy into the market. So, the volatility is because the people could not buy for the last 48 hours and it was true of yesterday as well,” said Ajay, an investor.
Another investor Alok feels that Indian markets will remain solid and stable.
“India is on a rock-solid footing in a relative sense. What leads me to be cautious on the index level is international flows,” he said. “You will see volatility in flows and in risk appetite.”
What is troubling, however, is that there have been signs of speculative access.
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