prasad1
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Benchmark equity indices tumbled on Wednesday to their lowest closing levels in almost five months, hit by strong selling on algorithmic trading platforms, as investors fretted over rising oil prices, a decline in industrial activity and tax demands slapped on foreign funds.
The 30-share BSE Sensex closed 2.63%, or 722.77 points, lower at 26,717.37 points. The National Stock Exchange’s broader 50-share Nifty shed 2.74%, or 227.80 points, to close at 8,097 points. It was the lowest close since 17 December for both indices.
The immediate trigger, dealers said, was a slump in Nifty futures on the Singapore exchange, where they are trading at a discount to the domestic NSE index futures.
That sparked heavy selling in domestic shares, especially in algorithmic trades, which account for a third of the total volume in Indian cash shares and almost half the volume in the derivatives segment, analysts said.
“Nifty was already below 200-day average and today it also broke Tuesday’s low, which generated strong selling on algo platforms,” said Nilesh Dedhia, founder of NTD Trading, which specializes in providing algorithm-based trading platforms.
http://www.livemint.com/Money/vWsga6iQAT4aUUfHCEEEAP/Is-the-party-over-for-Indian-markets.html
The 30-share BSE Sensex closed 2.63%, or 722.77 points, lower at 26,717.37 points. The National Stock Exchange’s broader 50-share Nifty shed 2.74%, or 227.80 points, to close at 8,097 points. It was the lowest close since 17 December for both indices.
The immediate trigger, dealers said, was a slump in Nifty futures on the Singapore exchange, where they are trading at a discount to the domestic NSE index futures.
That sparked heavy selling in domestic shares, especially in algorithmic trades, which account for a third of the total volume in Indian cash shares and almost half the volume in the derivatives segment, analysts said.
“Nifty was already below 200-day average and today it also broke Tuesday’s low, which generated strong selling on algo platforms,” said Nilesh Dedhia, founder of NTD Trading, which specializes in providing algorithm-based trading platforms.
http://www.livemint.com/Money/vWsga6iQAT4aUUfHCEEEAP/Is-the-party-over-for-Indian-markets.html
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