It was one of those days at the markets when you know beforehand that things are going to be really bad. The US markets had tumbled on Friday after ugly unemployment data and record crude prices. The Asian markets followed suit, and soon it was India's turn.
The markets opened deep in the red, and slipped further to levels that were 2008's lowest as the session progressed. A mild recovery saw the indices close off the day's lows. Realty, technology, capital goods, power, and banking stocks saw heavy selling. The Nifty closed at 4,500.95, down 126.85. The Sensex, which was down around 700 points at one stage, recovered to close down 506 points at 15,066.
Sangeeta Purushottam of Religare Securities feels 2008 will be a turbulent year. "News flows are unlikely to reduce. There is limited downside as bad news is getting factored in."
According to Purushottam, crude and inflation are key worries. "It needs to fall for some relief."
On infrastructure, she said, there may be more downside from here as the sector was over-owned. "We have not yet reached levels where it looks an attractive buy."
Investors should be cautious about real estate, as bad news is not over yet, Purushottam said. Banks seem to be bottoming out, so sentiment can turn positive, she added.
Source: Moneycontrol.com
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