Global weakness, political uncertainty drag market: Udayan

nifty closed below 5550 mark, so not a meaningful correction, but the optimism certainly has got watered down a little bit after the developments from New Delhi over the last 24 hours.

Midcaps performed quite worse today. The broader market did outperform on Tuesday but today we saw lot of long positions being unwound and traders becoming more cautious. While the Nifty was down only about a percentage point, lot of individual names lost 5-7 percent.

In the index itself, high beta infrastructure names like BHEL , Reliance Infra and L&T dragged the index lower. Reliance and ICICI Bank among the heavyweights did not do very well and some of the metal names like Sesa Goa and Tata Steel also did not do well.

However, some of the IT heavyweights like TCS and oil stocks like ONGC cushioned the downside of the Nifty.

The breadth of the market was not great. Many of the infra names like Lanco , GVK, GMR , IVRCL , Nagarjuna Construction got plastered today, that was the profile of stocks which took the biggest beating.

In textile S Kumars and Alok Industries fell sharply. Pantaloon  and Kingfisher also gave away their recent gain which was seen on Tuesday.

Some of the PSU banks still continue to do well. Names like Andhra Bank , Karnataka Bank and Vijaya Bank were up and ended on the wining side.

OnMobile had a good session today and some other names like ZEE and SJVN also did not do too badly.

All in all not a great outing today for the market, partly global weakness and mostly political uncertainty which was the undoing of the market today.