Markets remained in bear grip. The Sensex fell below 38000 level as selling in the market continued for the fourth consecutive session on accelerated selling by the foreign portfolio investors.
Though market opened in positive territory on positive global cues with the Sensex opening 107 point up at 38138 and touched a high of 38217 intra-day.
However selling resumed in the latter half and the benchmark Index touched a low 37898.90 and finally closed at 37982.74, down by 48 points or 0.13 per cent.
The Nifty-50 closed down by 15.15 points or - 0.13 per cent at 11331.05, earlier.
The benchmark Index touched a high of 11398 and fell to a low of 11302 in intra-day trade.
The broader markets were mixed as the BSE Mid-Cap Index fell 0.56 per cent while the BSE Small-Cap Index gained 0.38 per cent.
Siddhartha Khemka, Head — Retail Research, Motilal Oswal Financial Services said, "The Nifty could witness pressure till it doesn't surpass 11400 — 11420 zone while a hold below 11300 zones could extend its weakness towards next support at 11200 zone. Selective IT, OMCs, Insurance and Power stocks witnessed buying. However follow up buying at higher zone was clearly missing in market even after a fall of more than 700 points in the Nifty from the Budget day."
"The market is likely to remain under pressure due to lack of positive triggers. A lot of hope is now on the US Fed to cut interest rates which could support emerging markets including India. A major factor from the ongoing result season has been the management commentaries, which appeared cautious for the next 1-2 quarters."
Deepak Jasani, Head — Retail Research, HDFC Securities said, "A sell-off in the last hour dragged the indices into negative territory. Indian markets could not hold on to and build on the intraday gains as selling pressure across financials and Auto stocks offset the gains in FMCG, Power and Energy sectors. Participants are wary of more turmoil in the financial space and auto space taking longer to recover in the back ground of slowdown in demand and regulatory changes."
"Technically, with the Nifty correcting further, the bears remain in control. Further downsides are likely once the immediate support of 11301 is broken. Any pullback rally could find resistances at 11398," Jasani said.