Sensex manages to snap losing spree; no relief for midcaps
Benchmark indices just about managed to snap a seven-day losing streak, as a 3 percent-decline in index heavyweight Reliance Industries erased much of the gains.
March 26, 2013 / 18:18 IST
Moneycontrol Bureau
Benchmark indices just about managed to snap a seven-day losing streak, as a 3 percent-decline in index heavyweight Reliance Industries erased much of the gains.The BSE-Sensex closed at 18704.53, up 23.11 points and the NSE Nifty at 5641.60, up 7.75 points.There was no respite for midcap and small cap shares, which continued to slide in the absence of any buying support.Brokers said investors continue to be edgy because of renewed political turbulence, which has increased the possibility of early elections. But more than early elections, investors are worried that the present government may no longer be able to push through any major economic reforms, now that its survival appears to be at stake.Shares from the oil & gas, realty and capital goods sectors figured among the worst performers.Pantaloon Retail, DB Realty Purvankara Projects, GMR Infra, Sun TV, SpiceJet, were among the prominent losers in the midcap space, shedding 3-5 percent.Some market experts like Nilesh Shah of Axis Capital feels it is a good time to look at some of the beaten down secondline shares.“From a valuation point of view the small cap and midcap portfolio is at a fairly large discount to large cap indices, which current indices are not capturing from an optical point of view,” Shah said in an interview to CNBC-TV18 in an interview earlier today.Astrazeneca Pharma, ING Vysya Bank, REC, Satyam Computer, and Gujarat State Petroleum Corp. were among the notable gainers today, rising 3-6 percent.Investors continued to seek refuge in defensive sectors like FMCG and IT.Brokerage house Standard Chartered Securities expects valuations of top tier IT companies to sustain as macro-economic concerns leave investors with limited choices. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
