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Market swings put NSE on alert

Mumbai, Dec. 18: The recent volatility in the stock markets has prompted the National Stock Exchange (NSE) to become proactive. In a surprise move, the NSE today advised investors to be cautious in their share deals.

“Investors need to be careful before investing in equities and keep away from rumours and advertisements promising large returns. Do not be attracted to stocks promoted by internet websites, research reports, tips etc unless you have done adequate study of the company,” the exchange said.

The Nifty, the NSE index, today fell 34.7 points, or 0.6 per cent, to 5742.30 following the 270.8-point tumble yesterday, its largest single-day loss.

The 30-share sensex, the bellwether index of the Bombay Stock Exchange, had another bad day. After the 770-point hammering yesterday, it lost 181.71 points today to end at 19079.64.

According to Manish Sonthalia, vice-president (market-strategy) of Motilal Oswal Financial Services Ltd, “Investors should never forget to do their homework before investing in equities. The midcaps and smallcaps are just flying around everywhere.

“Investors need to be extra careful particularly before investing in midcap and smallcap shares at the moment,” he said. The NSE said investors should be wary of stocks that showed sudden spurts in prices and trading, while the scrips’ fundamentals remain unchanged.

FIIs sell

On the BSE, after a small bout of gains in the morning trade, the sensex fell at the end on increased selling pressure across counters barring healthcare, PSUs and consumer durables.

Marketmen said there were signs of sustained withdrawal by foreign institutional investors. The bank and metal indices came under heavy selling pressure, losing 1.42 per cent and 1.35 per cent, respectively. The consumer goods index lost 1.18 per cent.

Hindustan Unilever was the biggest loser, with its shares falling 3.39 per cent, followed by L&T, which was down 2.80 per cent.

Leading private sector lender ICICI Bank lost 2.27 per cent. Among the gainers, Cipla was up 3.78 per cent, followed by ITC, which rose 2.22 per cent. Ranbaxy and the National Thermal Power Corporation reported gains of 1.05 per cent and 1.66 per cent, respectively.

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