Udayan Mukherjee, managing editor, CNBC-TV18, says that factors like inflation, political noise around the presidential elections and European markets combined dragged the Nifty 70 points lower today. So, Nifty at 5050, did not quite give up all the gains made in the last few days, but certainly gave up some of those gains.
Inflation number was of course a big reason. In last few days the market has been fairly sanguine about very large rate cuts from the Reserve Bank, but today those expectations might have taken a little bit of a back seat.
The first sign was seen in the bond market. In morning, the yields had soften to 7.96 in the morning and then moved back to 8.04-8.05 which is a clear indication that expectations had got tempered.
The fallout was seen in banking and some infrastructure stocks and they were down quite sharply.
Also, Tata Motors ahead of JLR results tomorrow was quite weak.
So, tomorrow is the crucial weekend trade leading up to the Monday or Sunday elections and credit policy on Monday. So, the markets have taken a very tentative close today ahead of Friday session.
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