Euro debt woes play havoc on Dalal Street

Euro debt woes play havoc on  Dalal Street

Notwithstanding the assurance of funds from International Monetary Fund (IMF) to Greece, debt crisis has been haunting global markets and indirectly impacting other emerging markets including India in the form of excess volatility through out the trading session this day. 

High Volatility

So much so, the Sensex and Nifty closed below their psychological 17,000 and 5100 levels – after flirting with that levels through out the day – for the first time since March 5, 2010.  Volatility was high. NSE’s volatility index India VIX, a measure of traders’ perception of near-term risks in the market based on options prices, rose 2.83% to 24.36. The volatility index rose for the fourth day in a row. India VIX, which is calculated based on the S&P CNX Nifty options prices, is a measure of the market’s expectation of volatility over the next 30 calendar days.  The BSE Sensex fell 100.43 points or 0.59 per cent to close at 16,987.53 points.  The index shed 0.49 points at the day’s high of 17,080.47 in early trade, while it lost 264.96 points at the day’s low of 16,823.00 in early afternoon trade. The broader based S&P CNX Nifty declined 34.05 points or 0.66 per cent to settle at 5,090.85 points in the closing this day. As far as broader indices, the BSE Mid-Cap index fell 0.5 per cent and the BSE Small-Cap index fell 0.08 per cent, yet both these indices have outperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative with as many as 1473 shares on BSE declined as compared to 1370 scrips that advanced and a total of 97 stocks remained unchanged.  Also volume was also very high on markets, which reported total turnover of Rs 1,07,783.04 crore.  Of this, Rs 89,421.86 crore from the NSE futures & options segment, Rs 13,867.45 crore from the NSE cash segment and the remainder Rs 4,493.73 crore from the BSE cash segment.

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