Nifty Below 5600, Markets Tread Downhill

The Indian markets extended their losses and the Nifty slipped below its psychological support of 5600 in the last hour of trade, over the weakness in global markets. The European markets are under pressure as mining stocks tumbled after liquidity fears in China pushed down Shanghai Composite by 5.3%. At the end of the day, Nifty closed at 5590, down by 77 points and Sensex closed at 18,567, down by 206 points. Both the indices closed down in range of 1.10%-1.37%.

The advance–decline ratio ended on the negative side at the end of day. On the NSE, 1043 shares closed in red and 211 shares closed in green.

Top 5 Nifty Gainers: Jindal Steel and Power ended up by 1.35% as the top Nifty gainer, followed by Lupin, Hindalco Industries, HDFC and ICICI Bank.

Top 5 Nifty Losers: Jai Prakash Associates ended the day as the top Nifty loser, down by 11.27%, followed by Ranbaxy Labs, DLF, Kotak Mahindra Bank and Ambuja Cement.

All the sectors ended in red. Realty, Consumer Durables and Capital Goods were the top losers in the sectoral pack.
The European markets are trading in a negative zone too. CAC 40 is trading down by 34 points at 3623, followed by DAX and FTSE 100.

The Asian market closed in negative. China’s Shanghai Composite ended lower by 5.60% at 1963, followed by Hong Kong’s Hang Seng (down by 2.27%), Straits Times and Nikkei 225.

Buzzers: Shares of gold finance companies such as Muthoot Finance and Manappuram Finance hit multi-year lows on exchanges after the prices of the yellow metal slid to a 33-month low in the international market. Manappuram Finance closed lower by 9.4% to Rs 12.

Den Networks tumbled for the second day in a row. The stock closed down by more than 4% over heavy volumes. It had opened at Rs 185.90 and made a low of Rs 171.50.

Nifty has broken its strong support at 5600 and it may now touch the levels of 5550-5500 in near term.