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MUMBAI: Stock indices lost further ground after a plunge early Monday as traders were swift to sell shares tracking hefty losses in Asian and US markets. Domestic concerns over inflation and spiraling oil prices only worsened the situation, pushing the Nifty-50 Index below the previous 2008 low of 4448.50, making a fresh low of 4433.5 for the year.
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“The Nifty may break the 4448 mark, the level from which it bounced back in January. In the Month of March, it came within breathing distance of 4468 but bounced back. So if Nifty breaks the level of 4448 now, it would make a lower bottom and comprehensively answer whether we are in a bear market. The breaching would immediately trigger selling by all those who had not blinked in January and March. Our advice is to protect your capital at all costs and do whatever is needed to implement this strategy,” Anagram Stock Broking said in a note.
At 11 am, the National Stock Exchange’s Nifty was down 191 points or 4.13 per cent at 4436.50. The Bombay Stock Exchange’s Sensex was down 677 points or 4.36 per cent at 14,893.57, making a low of 14,864.37. Jaiprakash Associates (down 8.08%), HDFC (7.81%), Reliance Infrastructure (7.05%), DLF (6.96%) and ONGC (6.35%) were the biggest index losers. There were no gainers in the 30-share index.
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Do's and Dont's of Share Markets
India's annual inflation rate in late May rose to 8.24 percent, the highest since August 2004, data on Friday showed. Crude oil jumped by $11 on Friday hitting a record high of $139.12 a barrel on fresh tensions in the Middle East. Oil prices edged lower to $137.7 on Monday.
Indian shares largely underperformed other Asian markets. The Nikkei was down 1.86 per cent and the Straits Times dropped 2.05 per cent. Markets in Hong Kong were closed for a holiday. Foreign institutional investors' contribution in buying equities remained negative in the year 2008 (till June 6) as they made gross purchases of shares worth Rs 3,86,594 crore and sold the same valued at Rs 4,05,254.60 crore, indicating a deficit of Rs 18,660.60 crore.
