Indian equity benchmarks closed today about 2% below because of the confusion regarding the Indo - Mauritius tax treaty.
The 30-share BSE Sensex fell 363.90 points or 2.04% to close at 17,506.63. The 50-share NSE Nifty dropped 108.50 points or 2.02% to end at 5,257.90.
Most of the experts are bearish on the market. So retail investors should be very careful in investing.
I think the major support level of will be at 5171. If the bearish trend continues, then it can go below 5100.
Shares of Reliance Industries Limited(RIL) extended its decline for the sixth straight session on Monday as selling pressure continued following the Comptroller and Auditor General (CAG) report which said the Oil Ministry and Director General of Hydrocarbon (DGH) have allegedly favoured the company.
Today RIL closed at Rs.833.25 (Rs.35.50 in red NSE)
Indo - Mauritius tax treaty also affected GIL in a negative way. Shares of GTL , formerly Global Telesystems, crashed 62% to close at Rs 127.80, its lowest closing in over five years. Shares of group company GTL Infrastructure closed at Rs 16.85, down 43.27% over the previous close.
I think investors can make investments in RIL in this range, because controversies will not affect the infrastructure of the company in the long term point of view. RIL has best fundamental side support.
I think tomorrow there will be a positive trend in market. Invest only in front line stocks. Otherwise retail investors will be in trouble.
Lets hope for the best.........
Regards Hari " लोका समस्ता सुखिनो भवन्तु "
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