Nifty closes below 4700 for 1st time since 2009
16 Dec 2011
It was a dire situation for the market on Friday despite RBI's policy on expected lines and flat global cues. The Nifty closed below the psychological 4700-mark for the first time since November 3, 2009 while the Sensex shed 345.12 points. Looking at the sharp sell-off in index heavyweights, it seems investors cut some of their exposure in the second half of trade.
The Sensex closed at 15,491.4, after shedding more than 560 points from day's high of 16,068.90. The Nifty dropped 94.75 points, to end at 4,651.60; it touched the 4800 mark in an intra-day trade.
Sanjay Sinha, Founder of Citrus Advisors listed out the points, which spoiled the mood of markets. According to him, first is global problem, second is currency, third is government policies and fourth is interest rates.
For the week, the Sensex and Nifty fell over 4.5%.
Experts feel the mid quarter review of monetary policy announced by the RBI was on expected lines, so it was completely non-event for the market. Breaking of technical level of 4700 amid huge volumes may be the reason that traders opted to short selling.
"Today's fall is definitely a little more unexpected because the RBI policy didn't have anything that would spook the market," He feels this is some bout of concentrated selling.
