Market round-up: Sensex, Nifty fall on Friday, end on low
The Asian markets were dragged under pressure due to weak wall street overnight and the fear of a further rise in interest rates by US Federal Reserve but the major correction of the Indian market is largely due to overbuying for over a week.
The week has been on the bullish side as the benchmark indices Nifty 50 and Sensex surged close to 11,000 and 36,600 levels, respectively. The gains started on December 11 after the election results and ended today with a fall of 197.7 points or 1.81% in NSE'S Nifty 50, taking it to 10,754. On the other hand, Sensex witnessed a fall of 689.60 points or 1.89% fall on Friday and ended at 36742.07. The slump was due to the sell off in global markets for the second consecutive day after the increase in interest rates by US federal reserve.
Large players like TCS, Infosys, Wipro, Maruti Suzuki fell by over 3% by the end of the day. All the major sectors like Auto, bank, FMCG, IT dipped around 2% due to heavy profit booking. The coming festive season of Christmas and year end holidays could lower down the trading volumes of foreign and domestic investors in the upcoming sessions.
IT shares were under pressure due to constant appreciation of rupee as compared to dollar. The currency appreciation is not good for exporters (Majority of IT companies generate revenue in dollar).
Government's nod to infuse additional 41,000 crore into (Public sector banks) PSB's will largely benefit the banking sector in the coming weeks.
Long positions in cement shares could be avoided before GST council meeting in the upcoming sessions.
The Asian markets were dragged under pressure due to weak wall street overnight and the fear of a further rise in interest rates by US Federal Reserve but the major correction of the Indian market is largely due to overbuying for over a week.
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Technically, Nifty has broken extreme support levels of 10750 and 10810, whereas Bank nifty traded below the support zone of 27200 at 26869.65 levels.
Though the weekly closing has had a fall, but the upcoming sessions can expect a mark of Nifty 50 at 11,000 and BSE Sensex at 36,550.
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