Huge sell-off was seen in the Nifty energy (1.7 per cent), IT (1.1 per cent), and the financial services (0.6 per cent).

The market continued to be in a bearish grip on Thursday with the benchmark indices like Sensex and Nifty ending lower while the Small Cap and Mid Cap indices closed in the green.

The Sensex fell 157.89 points or 0.44 per cent to settle at 35,876.22, while the Nifty 50 closed 47.60 points or 0.44 per cent lower.

Huge sell-off was seen in the Nifty energy (1.7 per cent), IT (1.1 per cent), and the financial services (0.6 per cent).

While BPCL and IOC plunged by 4 per cent and were the top losers from the energy sector, Infosys and TCS shed 2 per cent and 1 per cent respectively dragged the IT index.

The market breadth was negative with 1164 shares rose and 1365 shares fell.

Bharti Airtel (3.09 per cent), Infosys (2.01 per cent), Asian Paints (1.66 per cent), Reliance Industries (1.52 per cent), Coal India (1.50 per cent), HDFC Bank (1.43 per cent) and HDFC (1.27 per cent), were the major Sensex losers.

Tata Motors (3.17 per cent), Sun Pharmaceutical Ind-ustries (2.20 per cent), IndusInd Bank (1.27 per cent), ICICI Bank (0.91 per cent), Hero MotoCorp (0.80 per cent) and Vedanta (0.73 per cent), were the major Sensex gainers.

According to analysts, the market continued to be weak despite positive global markets as investors largely focussing on domestic cues while assessing global developments. Moderation in WPI to 2.76 per cent in January provides an insight about the slowdown in the economy and earnings growth.
 
Technical View
Sameet Chavan, chief analyst-technical and derivatives, Angel Broking said, “We have seen correction in last five days and meanwhile the Index kept breaking few intermediate support levels. Now, next major zone is placed around 10720 – 10680. This becomes a make or break zone for the Nifty in the near term. But we would highlight that Thursday’s outperformance from the broader market in the second half is quite encouraging and if we continue to see similar action today also, we reckon 10720 – 10680 may probably be defended and the possibility of some relief then cannot be ruled out. On the higher side, 10800 are the level to watch out for. All in all, today will be a crucial day for our market; this may well be the trend-deciding factor in the near term.

Market View
Jayant Manglik, president, Religare Broking said, “The global markets are holding firm these days, taking solace from recent updates on trade talk between the US and China. However, foreign fund outflow, weak rupee and not so encouraging earnings are dampening sentiment on local front. The benchmark Index, Nifty, may see some bounce after the recent slide but 10,800-10,850 zone would act as hurdle. We suggest keeping balanced approach in trading and preferring Index majors.

Umesh Mehta, head of research, Samco Securities said, “The bulls are trying to make a come back which is giving a ray of hope in some individual stocks.

Vinod Nair, head of research, Geojit Financial Services said, “Mid Cap & Small Cap rebounded after many days of correction however investors are yet to find stability in the market in expectation of election outcome.”