Timing of global events unfortunate for market

It was always going to be a tough day for the market. Unfortunate timing because yesterday we had such a good pullback intraday, we had the Reliance deal in the evening but today we were set back by global events. Overnight Libyan unrest has spread leading to a huge 8-9% spike in crude oil to USD 93. The Brent basket which was more relevant to India is way above the USD 100 mark which led to a lot of tremors in the market.

So you could see that leading to inflation fears once again and a sell off in sectors like Banks, Axis Bank, HDFC Bank, IDFC all those were down. In Autos names like Hero Honda, Maruti, Tata Motors. In oil marketing companies particularly BPCL, HPCL and on the Aviation stocks where ATF will feed through lower margins, Kingfisher and Jet got hit really badly today. Infrastructure was not spared, so names like JP Associates, L&T, BHEL, were all down and all of these put a lot of pressure on the index which finally closed about 50 points lower at 5470, though off the lows of the day. Thanks to some part in Reliance which started the day well and closed the day around the Rs 990 mark which is up around 3% after the BP deal. Cairn did well too as well because of the spike in Crude prices and Reliance Communications was not too bad today. But that