The Sensex sank to a two-month low of 25,610.53 down by 256.42 points
Mumbai: The spike in the retail inflation, halving of industrial production in October, and weak Asian markets saw the markets plunge for the sixth time on Friday in seven trading sessions. The Sensex sank to a two-month low of 25,610.53 down by 256.42 points and the Nifty lost 62.75 points to close at 25,610.53.
Friday’s selling was surprising after the positive muhurat trading, said Ambareesh Baliga, senior independent market analyst, who feels the “downside will be limited” and this could be a knee-jerk reaction to the rising consumer price index (CPI) inflation numbers and low IIP numbers, as there was support at lower levels. “India still remains attractive compared to other emerging markets,” he said.
Asian markets from Hong Kong to Japan and South Korea were all down by 0.51 per cent to 2.15 per cent as commodities continued to plunge whilst the European markets all opened in the red because of the impending hike in US Fed rates.
Markets are displaying nervousness, says Mr Deven Choksey, managing director, K.R. Choksey Shares and Securities, “because of the infighting within the BJP after the Bihar election results. There is fear that the Prime Minister’s development agenda could be derailed by the utterances of some BJP leaders.”
Anand James, co-head technical research desk, Geojit BNP Paribas, said Nifty touched an intra-day low of 7,730.90 after economic data released on Thursday showed that industrial growth in September slipped. Selling pressure was seen in all sectors except metal stocks.
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( Source : deccan chronicle )
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