Markets nervous; stay invested in frontliners: Experts

It was yet another weak and extremely disappointing day for the markets. The markets opened with huge gap down on the back of disappointing listing of much awaited Reliance Power coupled with weak cues from the global markets. Sensex and Nifty traded under deep pressure for most part of the day and ended with substantial losses.

Reliance Power ended with sharp cut of over 17% on its maiden trading day. It got listed at Rs 430 today against its issue price of Rs 450. All the key BSE indices ended deep in red led by oil & gas, metal, power, realty and bankex. Market breadth was extremely poor with low volume. IT stocks were the star performer's in todays trade and the leading counters could manage to hold in green.

According to Gaurang Shah of Geojit Financial is of the view that a fall of 400-500 points on Sensex could happen going ahead. The pessimism was there due to disappointing listing of Reliance Power. However, the Budget is not expected to bring any negatives but may bring some positive news on interest rate front.

Deven Choksey of KR Choksey is of the view that there is lot of nervousness and anxiety. Volumes are missing. FIIs are not buying and have sold significantly due to compelling reasons of their own. Retail participation has come down substantially. Institutional players are seen and mainly on the arbitrage side. Overall activity levels are low in the market currently.

Reliance Power saw a crash landing accompanied by low buying interest and low comfort level in the market.

Both the analyst feel that fronliners are the safe bets at this point of time. Midcaps have no takers but money can be made in the frontliners.