Nifty ends with modest loss; banks, FMCG, cap goods dip
10 November 2010
Equity benchmarks lost some yesterday's gains and closed with modest losses on Wednesday, led by fall in financial, capital goods, FMCG, healthcare, telecom and metal companies' shares. Heavyweight Reliance Industries also slipped around 0.5%.
Even weak European cues weighed on markets a bit; France's CAC, Germany's DAX and Britain's FTSE were down 0.25-0.5%, at the time of closing of Indian equities. However, consistent buying in PSU oil & gas, ADAG and technology companies' shares along with Tata Motors and M&M limited losses.
The consolidation has been happening since Monday, especially post the markets closed at new all-time high in previous week. But experts looked more bullish on markets.
Vishal Kampani, MD of JM Financial said that the markets are likely to see an upside of 10% driven by strong liquidity and global flows. The brokerage firm is expecting the Sensex to test above 23000 by year-end.
Tim Condon of ING Financial Markets said that emerging markets cues were still positive and that he does not see any bubbles in emerging markets.
"There was a potential big negative for emerging markets from a very aggressive QE2 but since the quantum of QE2 was slightly lower than market expectations emerging markets are safe form any potential negative from QE2," he said.
However Kampani warned that one may find equities expensive in near-term.