Post-Budget recovery proves short-lived for Sensex

The Sensex moved below the 14,000 mark to close at 13,769.15. This marks a fall of 401.30 or 2.83%.

Capital Goods and the Realty indices were the worst performers of the day. Realty was down 8.47% while Capital goods slipped 5.05% by the end of day’s trade.

The Auto sector, went down 0.23%. Market experts suggested that the reason they showed some strength is fund managers expect positive earnings surprises from the sector in the results season. FMCG which is also popular among fund managers looking for a domestic consumption play was down a marginal 0.90%.

The Nifty was down 123.25 points to close at 4078.90, a drop of 2.93%.

BPCL was the top gainer of the day rising 4.46% finishing at Rs.465.25, while ACC was up 2.95% to close at Rs.787.60.

A bounce might be in the offing according to a report by Ambit Capital. Suggesting that the market is oversold, one might see some sign of reversal. “In this week we expect the index to witness a bounce from 4150 to 4180 levels,” said the report.

The short term target for the Nifty would be at 3980 added the report.

Unitech and Suzlon were the top losers of the day. Unitech went down 10.58% to close at Rs.68.45 while Suzlon was down 10.56% to close at Rs.87.25. Tata Steel, HCL Tech and Reliance Capital all lost between 8% and 9%.

FIIs were net sellers by Rs.828.01 crore. There were 42 declines and eight gainers among the fifty stocks that comprised the Nifty.