Nifty ends below 6200 ahead of G-20 meet; heavyweights dip
11 Nov 2010
The benchmark Nifty closed below the 6200 - an psychologically important level, dragged down by oil & gas, technology, realty, financial, capital goods, telecom and FMCG companies' shares, ahead of G-20 meet today. Even the index tested 6180 - a key support level in last one hour of trade.
Some news reports suggest that the G20 talks are not working out especially on currencies and this could be the start of some negative triggers that the Indian markets have suddenly faced.
There has also been massive selling to the tune of USD 1.9 billion seen in Korea during final minute of trading; this could be another reason behind today's fall. This is being attributed to the failure of US President Barack Obama and his Korean counterpart failing to reach free-trade accord. Korean Composite Index tanked 2.7%.
Dipan Mehta, member of BSE & NSE said slowdown in FII investment could also be the reason. "I think there is some amount of slowing down of FII investment as well so that also is playing on the minds of investors. The primary market seems to be pinching at this point of time because Coal India went through like a breeze but Power Grid again sucking up a lot more liquidity. And markets also at these elevated levels, I think some amount of caution is getting into the system."
However, experts are still bullish on markets as they advised buying on every dip. "I wouldn't get too perturbed at this point of time and I think correction of 3% to 5% even 10% lower from these levels are good entry points for the market because usually when it's rising it never gives an opportunity to enter," Mehta said.
Even Devang Mehta, Vice President & Head - Equity Sales of Anand Rathi Financial Services said, "I take this as a healthy bit of a correction and can be utilized to buy a lot of participants who were being on the sidelines."
