Markets end in deep red after volatile trade

After opening on a weak note, the Indian markets remained volatile for the day. With the final UP poll numbers being declared, the SP now has a majority of votes. This seems to have come against the expectations, as the markets have pared all their morning gains. After the final poll results, the markets ended in the deep red zone, with the Sensex and Nifty both down by as much as 1.09% and 1.10%.

Other Asian markets also closed in the negative zone, as investors were seen concerned over the ongoing European debt crisis. Also, the Chinese leader, Wen Jiabao, announced a growth rate of 7.5% for China in 2012, which was below the investors' expectation of 8%.

The European markets continued to trade in the negative zone, as investors remained concerned over the economic growth of the region. Also, China's announcement of the GDP growth target of 7.5% for 2012, the lowest in the last 7 years, kept the investors' nerves tense.

Dow Jones Futures is currently trading 104 points or 0.81% up at 12857, indicating a negative sentiment in the US markets.

Back home, the major sectoral indices barring FMCG, Consumer Durables and IT ended the day in the red zone. Metals, Power and Consumer Goods remained the top losers, ending with losses of 3.88%, 2.38% and 1.94% respectively. The other indices ended with losses between 0.32%-1.79%.

The market breadth, which indicates the overall health of the market, was negative. Out of the 3263 stocks traded on the BSE, 2008 declined, 1141 advanced and 114 stocks remained unchanged.

In conclusion, we expect the markets to remain volatile, as there are various upcoming events that will decide the market direction. Therefore, we advise investors to remain cautious.