Global cues, expiry weigh down mkt; Nifty may go below 5050

It is coinciding with the kind of back turn the European markets are taking as well. The German market was holding out but, that has also started coming off. Hence, it is a combination of poor global cues and maybe apprehension that things are unravelling now on the global front. Plus there are some pressures which are coming in today because of expiry.

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But, what has led to the undoing of the market is the way the broader market sentiment has collapsed over the last couple of days. First with that F&O list yesterday and then with the large 20% falls because of margin call and collateral based selling. That has destroyed midcap sentiment for retail quite considerably in the last 48 hours. It is no surprise that the midcap index has done so much worse than the largecap index.

So it was partly due to sentiment and partly influenced by global cues. But, this would take a few people off guard and the Nifty might be on its way to closing even below 5050.