Downward Trend Prevails Due To Selling Pressure

The stock markets continued their downward trend at the National Stock Exchange (NSE) due to lack of buying support and sustained selling pressure. The NSE 50 opened at a high of 906.56, before reaching a low of 886.68, losing 16.55 points over the previous close of 906.68. Trading activity at the major bourses remained weak and the net traded value at the NSE was Rs 867.23 crore and the net traded quantity was 436.41 lakh shares and the number of trades were 81162.

The ITC controversy continued to affect the market sentiment and the stock closed lower at the NSE. The ITC stock, which had steadied at Rs 300.45 on Friday, opened marginally weaker at Rs 297.25, touched a days low of Rs 288.50 before closing the day at Rs 290.75. The ITC stock had lost ground at the BSE also.

 

According to market circles, the markets could gain some ground today, being the last day of the trading settlement cycle at the NSE. Hectic activity was witnessed in scrips like State Bank of India, ITC, Reliance, L&T, Bajaj Auto, MTNL, ACC, BSES, Telco, BHEL, Tata Power, Gujarat Ambuja, ICICI and Bank of Rajasthan.

With selling pressure continuing through the day, several key stocks recorded their 52-week lows at the NSE. These stocks were ACC, Ballarpur Industries, IFCI, Indo-Gulf Fertilisers, ITC Bhadra and SCICI.

``There may be some recovery at the markets today but the overall sentiment will continue to be weak. The reports of the ITC controversy and the Ajay Kayan arrest by the CBI have affected sentiment. The market keenly awaits the meeting of the finance minister with the Sebi officials as signals for the revival of the markets would become clearer, a leading NSE dealer said.

The trading activity at the ITC counter remained steady with the trading value placed at Rs 188.12 crore at the NSE. The SBI stock witnessed steady trading activity with a trading value of Rs 326.57 crore.