Markets remain under pressure

MUMBAI: Stock markets fell for the sixth day in a row on Wednesday with the benchmark Sensex paring the early gains to close down by more than 160 points on selling, triggered by particularly weak cues in overseas markets and profit booking by cautious investors.
    
The 30-share Sensex on BSE closed at 8,773.78 points, lower by 163.42 points from its last close, after a highly volatile trade which marked the trade in the past few days.
    
Similarly, the wide-based National Stock Exchange index Nifty fell by 48.15 points at 2635.00.
    
The Sensex has lost a whopping 1762.38 points in the past six days due to relentless selling. As the barometer closed below 9,000 level for the second straight day, consumer goods stocks and banking shares took a a toll on their prices.
    
The barometer had surged nearly 300 points or 3.3 per cent and traded above 9,000 level in early trade before selling pressure emerged pulling down the Sensex steeply.
    
Sustained capital outflows and worries of recession getting longer than anticipated wiped out early gains.
    
Relief measures, like imposition of import duty on steel and crude soyabean oil, to the domestic industry by the government also failed to boost have any impact on investor sentiment. Brokers said strong anticipation of further steep rate cuts too did not affect the trading.
    
Mirroring the high volatility, Sensex oscillated in a wide of range of between 9,236.27 and 8,726.80 points-- a a staring difference of over 500 points.
    
Barring Shanghai Composite which soared by 6.05 per cent, other Asian indices were down by about 0.5 per cent to 2.0 per cent, while European markets were lower by over 1.5 per cent in their early trade.
    
Brokers said investors were cautious and booked profits at any rise in the share prices because of consistent FII pull out, the principal driver of the market.