Nifty ends below 6100; Bank, Realty, Auto indices dip 2%

Equity benchmarks saw a profit taking on Wednesday on the back of sell-off in financial, auto, metal, realty, telecom and capital goods companies' shares. The benchmark Nifty slipped below 6100-mark in second half of trade, especially after a fall in global markets.

Experts feel that markets are riding low and all eyes are on the third quarter earnings that will kick-start next week. Sandeep J Shah of Sampriti Capital said that the upside maybe 6,200-6,400 but it will not ride away at that level. He is also concerned on the foreign institutional investor (FII) inflows to India.

''Insurance companies inflows are very muted, domestic mutual funds redemptions continue, some of the HNI's and retail, at least a part of them have perhaps left the market because of the corruption, the scams that have been unearthed,'' he explained.

European markets - France's CAC and Germany's DAX were down 1% each; FTSE fell just 0.2%, at the time of closing Indian equities. Even US index futures like Dow Jones and Nasdaq declined 0.5% each. Shanghai fell 0.5% and Taiwan tanked 1.7%.

Jim Walker, MD of Asianomics said that Europe is a bigger problem than China and US. ''Europe is going to see political turmoil,'' he explained.

According to him, the US economy may see weakness in the next six months. Expressing concern, Walker stressed that there might be monetary tightening across Asia. He believes that the Reserve Bank of India (RBI) is likely to hike interest by 25 bps this month.