Sensex drops to 12K level,shutdown saves Valley investors

Sensex drops to 12K level,shutdown saves Valley investors
BILAL HUSSAIN
Srinagar, June 29: The sensex has lost over 30 per cent of its value in less than six months. The capital market experts believe that the sensex is heading towards 12K level. The market tumbled down for the sixth successive week due to high inflation, rising crude prices, and weak global cues helped the bears throughout this week. The BSE sensitive index plunged 769.07 pts and closed week at 13,802.22, the nifty, index of the NSE was down by 210.90 pts and settled at 4136.65. The markets witnessed volatility throughout the week. Global concerns over rising crude oil prices and inflation continued to weigh heavy on the minds of the investors. In the week gone by the sensex ended in red three out of the five trading sessions. For the week ended June 27, 2008 the sensex lost 5.3 per cent, while the nifty shed 4.9 per cent. Market Wrap: This week markets started on a weak note on the wake of weak trends in US market. Weakness persisted through out Monday till the final trading hour causing the indices to close well below the dotted line. The sensex has recovered nearly 130 pts from day's low of 14,163.45 and closed at 14,293.32, down 277.97 pts. The nifty slipped below 4300 level and ended at 4266.40 down by 81.15 pts. Although on Tuesday, markets opened in the green but by the end of the day the sensex closed 187 pts down. In the process, it fell below the 14,000 mark for the first time since end August 2007. On Wednesday markets began on a passive note but buying activity intensified in the subsequent sessions causing the indices to recoup losses and closed well above break even. The market got off to a negative start following the Reserve Bank of India hiking CRR and Repo rates by 50 basis points each. While the sensex gained nearly 115 points, the nifty shot up by 62 pts that day.The previous day's optimism trickled over to Thursday's trading session as well. The market remained positive throughout the day despite exhibiting high volatility the sensex and nifty ended the session stronger by over 300 pts and 60 pts respectively. Friday saw the markets open on a very weak note influenced by weak global cues. The inflation has reached 11.42 per cent from 11.05 per cent during the previous week further dampened the sentiments of investors and the markets closed deep in the red. The sensex closed lower by 600 pts on Friday. Institutional Front: The week ended June 27, 2008 mutual funds emerged as net buyers to the tune of Rs 10 billion, while the Foreign Institutional Investors emerged as net sellers to the tune of Rs 5 billion. Experts' Opinion: The market is expected the go down further to a level of 12K. On the wake of high inflation, rising crude prices, and weak global cues the bears are expected rule the markets for some more time.