sensex: Markets Watch: Is there a lack of buy conviction at current levels?

Welcome to ETMarkets Watch, the show about stocks, market trends and ideas for making money. I am Bhaskar Dutta and here are the headlines at this hour.

> RBI launches surveys to obtain information on the policy
> Future, Amazon lawyers reach key agreement
> Doing in India is the need of the hour: Modi
> The World Bank stops projects in Russia and Belarus
> Publication of new rules on claims in the event of a road accident

Let’s take a quick look at what happened in Dalal Street today.

Domestic stock markets fell for the second day in a row as Ukraine’s escalating geopolitical conflict made traders increasingly jittery.

After starting the day on a positive note, benchmarks succumbed to selling pressure in late trade as a relentless rise in crude oil prices heightened worries about the US trade deficit and inflation. India, given the country’s dependence on raw material imports.

Weakness in financials, consumer staples and consumer durables offset buyers’ interest in metals and computer stocks, dragging indices lower. The sale depleted investors by Rs 34,785.40 crore.

The BSE barometer climbed 572 points during the day, closing in on the 56,000 mark before giving up all gains to end 366 points lower. The index has lost 572 points over the past seven sessions.

Its larger counterpart, the Nifty50, added almost 300 points earlier in the day, almost touching the 16,800 mark before erasing gains and ending 107.90 points lower. The index has lost 250.10 points over the past seven days.

Broader markets were mixed, with the BSE small cap index gaining 0.4% while the mid cap index lost 1%. The India VIX Fear Gauge fell 3.7% to finish below level 29.

Of the BSE Sensex 30-pack, 19 stocks ended lower, with shares of Ultratech Cement losing 6.5% to make it the day’s worst performer.

Asian Paints lost 5.2%, while Dr Reddy’s lost 3.5%. Maruti, Hindustan Unilever, ICICI Bank, Bajaj Finserv and Nestlé all lost more than 2% each, while M&M and L&T fell 1.8% each.

Power Grid led the winners with a 3% rise, followed by Wipro, Tech Mahindra and HCL Tech, which each added more than 2%.

No less than 26 stocks tested their 52-week highs during the session, while 20 tested their 52-week lows.

We have Vinod Nair from Geojit Financial Services to share his take on the action and the road ahead:

Welcome to the show sir:
1. Markets were unable to sustain early gains today. Is there a lack of buying conviction at current levels?
2. FII selling continues unabated. Can domestic purchases correspond to releases abroad?

We also caught up with Sameet Chavhan from Angel One to decode the spec sheets for you.
1. The Nifty50 settled below the 16,500 level today. What do the spec sheets suggest about this?
2. Nifty Bank fell deeper than the Nifty for the second day in a row. What is your outlook?

Asian markets generally settled with decent gains for the day. Major European markets were trading with discounts in the early hours of trading. Additionally, US stock futures were down towards a negative start for US stocks later in the day.

That’s all for the moment. Check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye!

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