Markets End in Red After Witnessing 5 Day Rally

The markets broke their five-day winning streak amid political uncertainties surrounding the widening probe into the 2G scam, impending weekend and resistance around the crucial 5600 levels on the Nifty. The Sensex ended at 18,211, lower by 295 points or 1.5% and the Nifty shut shop at 5458, down 87 points. The broader markets underperformed; the midcap index ended at 6662, down 133 points and the small cap index ended at 8131, down 193 points. The benchmark indices had touched three-week highs earlier in the day and looked set to register their sixth consecutive day of gains and end the week on a high note before succumbing to volatility in the later part of the day. The Anil Dhirubhai Ambani group (ADAG) group Chairman Anil Ambani was questioned on Wednesday by CBI in the widening probe into the 2G scam. The CBI also questioned Essar Group CEO Prashant Ruia in connection with the company's alleged connection with Loop Telecom. Moreover, there are reports of a raid at the offices of Kalaignar TV, a TV channel owned by the family of DMK, sparking worries of political stability at the centre as the DMK is a crucial rally of the Congress at the Centre. Meanwhile, Wall Street finished higher on Thursday after a strong manufacturing report overshadowed a bigger-than-expected rise in the number of people applying for unemployment benefits; The Dow gained 30 points to 12,318 and Nasdaq added six points to 2,831. This boosted the sentiment across Asia, with the key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea and Taiwan rising between 0.8% and 2%. And the European indices, including the FTSE, CAC and DAX had edged only marginally lower in mid-morning trades.