Nifty struggles below 8650, Sensex drags; Tata Motors, HDFC down

Moneycontrol Bureau11:30 am Market outlook: The continuous rally witnessed in equity markets all over is mainly because central banks have been pumping in liquidity and if this liquidity is withdrawn then global equities are sure to fall sharply, says Michael Every, Head of Markets Research-Asia Pacific, Rabobank. According to him, global equities are fundamentally overvalued. So, even as there could be a small upside to equities even now, the tail risks are enormous, he adds. With regards to Fed rate hike, he believes that a rate hike is likely only in December because it would not like US equities to fall before the elections. However, in case the Fed hikes in December, there is unlikely to be any further hikes, says Every. According to him, India will relatively outperform other markets because the growth story there is relatively better.Don't miss: Infosys Q2 likely to be slowest Sept quarter since 2009, BFSI key

Selling continues on Dalal Street as the Sensex is down 270.22 points or 0.9 percent at 27812.12. The Nifty is down 86.30 points or 0.9 percent at 8622.50. About 872 shares have advanced, 1509 shares declined, and 100 shares are unchanged.

Infosys, ONGC, Cipla, Asian Paints and M&M are gainers while Tata Motors, HDFC, Adani Ports, ICICI Bank and TCS are losers in the Sensex.

Gold prices rose as the US dollar pared early gains and equities plunged on Chinese trade data that stoked concerns about the health of the world's No.2 economy. The climb in bullion came despite signals from the US Federal Reserve minutes that the central bank could raise interest rates in December.

Asian stocks stumbled to three-week lows and US stock futures and Treasury yields fell after China's September trade data showed a sharp decline in exports.