Asian markets declined on Tuesday morning because of losses in financial shares on resurgence of sovereign financial debt woes. The Hang Seng index was down 1%, the actual Shanghai Composite index declined 0. 3% and the Nikkei get rid of 1. 3% in the morning trades. US markets were shut on Monday due to Labour day holiday.
In Europe the cost of insurance against bank climbed to some record high which had a ripple effect on the actual banking shares. Risk aversion for equities resumed over worries that sovereign debt crisis would explode right into a full blown financial crisis.
Back in India, “if the actual Nifty closes below 4, 950 level, the index might drag towards 4, 800 level support. On the benefit, it caps an important resistance at 5, 080 amounts; if sustained with volume, support may gain momentum in the direction of 5, 120-5, 240 levels, " said Ashish Chaturmohta through IIFL Private Wealth.
On Monday, the Foreign Institutional Investors were net buyers of Rs 133 crore in cash and also the Domestic Institutional Investors were net buyers of Rs 1, forty seven crore.
In the derivatives segment, FIIs were net retailers of 353 crore. They were net sellers of 566 crore within the index futures and Rs 113 crore in index choices. On the other hand, they bought shares worth Rs 350 crore within the stock futures and sold shares worth Rs 23 crore in investment.