Heavy Selling pressure:Nifty 207 points Down Sensex 726 points down

The market is likely witness volatility during intra-day trades and may succumb to selling pressure amid overnight weakness in the US indices and the bearish looking Asian indices in the ongoing trades. Among the key domestic indices, the Nifty could get support at 4860 and a slip below this level may see it dip further to 4800, while on the upside, the index has a key resistance at 5050. The Sensex has a likely support at 16150 and could test higher levels of 16480.

Massive selloff was seen in the Indian markets today. Perhaps the inflation number of close to 7% was the trigger for this. Sensex closed 4.44% and Nifty 4.2% lower today. Midcaps and smallcaps faired better, with BSE Midcaps down 1.5%, CNX Midcaps down 1.7%, BSE Smallcaps down just 0.75%.

Sectorwise losers included Bankex down 5.9%, IT down 5.6%, Realty down 5.4%, Metals and Oil & Gas down 4.3% each, Consumer Durables down 3.5%, Power down 3.4%, Capital Goods down 3%. FMCG, Auto and Healthcare showed more subdued losses.
• ICICI Bank, Yes Bank were major losers, down over 7.5%. Others included Bank of India down over 7%, Kotak Mahindra down over 6%, HDFC Bank.
• IT has shown generalized weakness across the board with HCL Tech, Infosys, Rolta, TCS, Wipro down over 6%.
• The worst hit among realty are HDIL down almost 9% and DLF down 7%, Phoenix Mills down 6%.
• Bhushan Steel, Gujarat NRE Coke were down over 8% each. Hindalco, Jindal Steel, SAIL have shown losses of over 6% each. Sterlite dropped over 5%.
• Essar Oil, ONGC, BPCL and RNRL showed drops between 5 and 8%.
Other losers include Adlabs down 10%, Bajaj Hindustan down 8%, Bilcare down 9%, Deccan Aviation down 6%, Future Capital down 7%, Geetanjali Gems down 7%, Godrej Industries down 10%, India Infoline down 10%, Indiabulls down 12%, Reliance Capital down 12%, among others.


Among smallcaps, ACE dropped 13.6%, Atul Ltd dropped over 9%, Bartronics down 7%, Cambridge Solutions dropped 10%, Dolphin Offshore down 10%, ECE Industries down 12%, Electrotherm down 10%, Godawari Power down 8%, Navin Fluoride down almost 10%, Nelcast down 8%, Varun Industries down 8.5%,

Major gainers included Alstom Projects showed gains of 6.4%, Asian Hotels rose 12%, Cranes Software up 5%, Elder Pharma up 7.3%, ICRA rose 11%, Ipca Labs rose 6%, Matrix Labs rose 7.5%, Sanghi Industries up 12%, Shree Cement up 7%, among others. Among smallcaps Hercule Hoists rose 10% (volume: 200-odd shares), Heritage Foods rose 7%, Indowind rose 20%, KSB Pumps rose 7%, Lumax up 13%, Micro Tech up almost 8%, Strides Arcolab up 10%, South Asian Petro up 10%, Sulzer India up 20%, Zenith Info up 17%, Zodiac up 10%.

Marketwide turnover was around Rs 67600 crores. Market breadth evened out with approximately 1534 advancing to 1470 declining stocks on the BSE and 440 advancing to 720 declining stocks on the NSE.