Markets saw selling pressure today due to the home loan scam, in which the Central Bureau of Investigation (CBI) has arrested eight top officials of LIC Housing Finance, LIC, Central Bank of India, Bank of India, Punjab National Bank and a private financial services company in connection with a bribery case.

Indian Markets were already trading weak for the past few days due to the Global problems and the recent 2G Scam, suffered a fresh jolt post this news. The euro debt crisis despite the Ireland bailout, China rate hike fears, tension between Korean neighbors and our very own 2G scam have spelled enough trouble for our markets so far. Indices (Nifty, Sensex) which scaled to record highs at the begning of the month, are down almost 8% so far.

Nifty today closed at 5865 down 69 points and Sensex closed at 19459, down 233 points. The midcap index lost 1% at 8,094 while the smallcap index managed to buffer its losses to end down 0.5%. Goenka Diamond surged 19.5%, MSK Projects up 13.8% and Splash Media, which gained 12.11% were the top gainers from the smallcap space.Money Matters down 20%, Man Infraconstruction and MVL shedding 15% and 9% respectively are the top losers in the midcap space.

On the Asian front, the markets closed mixed. After closing down 2.7% yesterday, Hang Seng recovered to close in the green today, gaining 0.5% at 23,023. The Shanghai Composite closed 1% higher with banks leading the gains. On the other hand,Nikkei, Seoul Composite and Taiwan Weighted dropped 0.1% to 0.8%, respectively.

In the European markets, DAX and FTSE are the only indices trading in the green, gaining 0.1% each. CAC is trading down 0.4%. The US index futures indicates that Dow may rise nearly 32 points at the opening bell.

Today shares of LIC Housing Finance plunged 18.32 per cent to Rs 1068.55 on the BSE. It touched a low of Rs 1031.10 in trade. Shares of Central Bank of India also tanked on the same issue. The scrip fell 8.02 per cent to Rs 197.90 on the BSE. It touched a low of Rs 191.40 in trade.

Tags: Housing scam India, Housing scam stocks, stocks to avoid Housing scam

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