Market signals alarming

MUMBAI: Early Sensex gains disappeared like a high-rise built on quicksand as even the big-bang debut of real estate major DLF on the Sensex could not save it from a negative closing.

Weak global markets due to the lull ahead of Thanksgiving holiday in the US and unwinding of P-note investments could be reasons for reduced investor interest in the blue chips, marketmen said.

The Sensex hit a high of 19,971.44 at the onset of the trading session. At the day’s high of 19,971.44, it had gained 273.08 points. But it pared gains soon and ended the day with a 65-point loss at 19633.

DLF was among the few Sensex gainers, jumping 1.2% on its first day on the index. But heavyweights like RIL, L&T, HDFC, ICICI Bank and HDFC Bank all ended in the red.

According to Manish Bandhi, VP- Research, India Infoline, “There is not much aggressive buying by FIIs like we witnessed a month ago. Some new institutions are buying, but this is getting offset by the steady unwinding by P-note investors.”

FIIs have net sold Rs 11,020 crore in the derivatives segment in the one month since the Securities and Exchange Board of India (Sebi) announced P-note regulations.