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Benchmark stock indices in India slumped for the sixth straight day, touching a new multi-month low.
Sensex closed at 77,580.31 points, down 110.64 points or 0.14 per cent today, while Nifty closed at 23,532.70 points, down 26.35 points or 0.11 per cent. Sectoral indices were mixed today. Nifty bank, auto, media were in the green, while FMCG, pharma, PSU bank were in the red. Amol Athawale, VP-Technical Research, Kotak Securities said that the short-term traders should remain cautious and be very selective as there is a risk to get trapped at lower levels. The fall in the indices sustained due to a range of factors, including relatively weak Q2 earnings, sustained foreign fund flows, and rising domestic inflation - both retail and wholesale. Indian equity markets continued to fall due to persistent selling by foreign portfolio investors, said ICRA Analytics. Additionally, the rise in the domestic retail inflation rate in October above the RBI's upper tolerance level, along with the weakening of the rupee against the US dollar, further extended the losses, added ICRA Analytics. Tomorrow, ie Friday, the Indian stock markets will be closed on account of Prakash Gurpurb Sri Guru Nanak Dev. The next active trading day is Monday. "During a correction phase in the market, like the present one, there will always be counter moves, which will facilitate a bounce back. This can happen any time now," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. "How long can these flows sustain? How early can we expect a rebound in earnings growth and strong GDP indications? These are relevant questions for which we will have to wait for answers. Meanwhile investors will have to stay with quality stocks in sectors with strong demand," Vijayakumar added. (ANI)
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