Widely read:
On Tuesday, tech stocks were hammered. Nevertheless, the market managed to close in positive territory (see Uncertainty in the Market). On Wednesday, it was the turn of the banking stocks with HDFC Bank leading the pack.
What is clear to all players is that one cannot predict the direction of the market anymore.
Despite a good Monday and a "not-so-bad" Tuesday, the bears dominated on Wednesday. The Sensex rose in the first half of the day but selling pressure forced it down in the second half. Barring the BSE Realty, IT, Auto, Teck and Metal indices, other sectoral indices ended in negative territory with the BSE Bankex losing the most. Stocks like Spice Telecom, Castrol India, Arvind Mills, Hotel Leela and Indiabulls Securities were among the major gainers.
The news on the FII front at first was encouraging. Newspaper reports stated that for the first time this year, FIIs turned into net buyers for six days in a row. This promptly led to speculation that the worst was over. But on Wednesday, they were net sellers.
Today will be crucial. The U.S. market closed higher yesterday and Asian stocks were faring well this morning. But what could happen during the day is anyone's guess. Not only is it the F&O expiry but also the results of HDFC Bank, Maruti and ACC will be declared.
Everyone expects a volatile trading day.
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