Market crash expected; Nifty not in sync with global peers

Following Wednesday’s sharp dip, the fall in the market should have come as no surprise today. Global cues are supportive so it seems that the Indian market is not moving in sync with global mood, said Udayan Mukherjee, managing editor, CNBC-TV18.

"There are a couple of disturbing elements in this fall. One is that the global backdrop is quite supportive. Secondly, a lot of India-specific selling is going on. Also, on the pullback, the volumes were much shallower and have started picking up on the way down," he explained. Also read: BSE Sensex drops 500 pts in 2 days; ends below 200 DMA

Here is the edited transcript of the coverage I thin big crack came on Wednesday and we should have expected this fall today. There are a couple of things disturbing about today’s fall. One is that the global backdrop is quite supportive. Not only is Europe up, the Dow futures is pointing higher, we have had some reasonably okay news from Japan and that market went up 2 percent. So, the big markets of the world whether it is Europe, Japan or the whiff of what is to come later this evening from the US are all pointing in the green while we have lost nearly 100 points on the Nifty. There is a lot of India-specific selling which is going on. There were talks about the prospect of exchange traded funds (ETFs) having started to sell and that might just have got magnified because today we are not moving in sync with other global markets. We are falling almost as a lone market, with one or two other companions. That is a little disturbing that we are not moving in sync with the global mood. The volumes are much higher than even Wednesday in the fall today. This is a little disturbing that on the pullback, the volumes were much shallower and they have started picking up on the way down. So, a couple of these internals do rankle as the last couple of days have been quite bad.