With the uncertainty over Left Parties’ support to the UPA government getting resolved, the markets staged a partial recovery by close from their intra-day lows.
The BSE benchmark that hit a low of 13,049 levels during the session recovered partially to end the day at 13,350 levels, down 176 points. In broader markets, the Nifty is closed down 41 points at 3,988 levels.
“Nifty has crucial support at 3,983 and 3,902-3,923 levels. Immediate hurdle is pegged at 4,065 levels, which if sustained, can take it higher to 4,094-4,116 levels,” said a technical analyst with Religare Securities.
In a major political development, Left Parties decided to withdraw support to the UPA Government in protest of a civilian nuclear energy deal with the United States. They will meet President Pratibha Patil on 9 July to formally communicate this decision.
Other Asian markets also ended weak. Hong Kong share prices tumbled 3.16% on concerns about the global credit squeeze and rising inflation. The Hang Seng Index closed lower by 692 points at 21,220.
Back home, technology counters were the worst hit with Moser baer skidding 5.5%. NIIT Limited, Satyam Computer, HCL Technologies, i-Flex Solutions and Infosys Technologies lost considerable ground.
However, capital goods counters registered strong gains on hopes of the civilian nuclear deal sailing through. Alstom Projects (up 7.3%), Areva T&D (5.4%), Elecon Engineering (3.1%), BHEL (2.2%), ABB (1.8%) and Siemens Limited (0.8%) were some of the notable gainers in this space.