Indian Stock markets ended lower on Wednesday’s trading session. BSE Sensex lost 382 points and closed below 20,000. NSE Nifty closed below 6000 mark with a loss of 138 points. Market Experts believe that the negative news from Global markets may cause further downfall in Indian stock markets.

Stock markets have gained very quickly in the last quarter of 2007. There have been two very small corrections. Technical Analyst Rajat K Bose said in a statement that Indian Markets are looking overheated. This time, the correction is expected to last longer and may cause substantial erosion of market capital.

Stocks across all sectors have witnessed a correction in past two days. Markets recently crossed 21,000 mark and have lost ground as US markets have been weak in the New Year.

Jagran Prakashan closed at Rs 160 with a gain of 6 percent. Educomp Solutions close at 5381 on BSE with a gain of nearly 8 percent. The stock was recommended by Technical Analyst Ashwani Gujral recently.

Essar Shipping and Kinetic Engineering closed with a gain of 5 percent.

Among major losers on BSE were HDFC Bank (lost over 6%), Reliance Communications (lost around 6%) and Tata Power (lost around 5.5%). JP Associates lost nearly 5 percent to end the day at 431. NTPC lost over 5 percent. Sterlite Industries was among major losers. The stock ended the day at Rs 926.

Markets are looking weak. Intraday traders are advised to stay away from the markets for next few trading sessions. Short term positions should be squared off. The direction of US markets will decide the trend in Asian and Emerging markets. The correction may continue for next few trading sessions.