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    HomeNewsBusinessMarketsNifty hits 6-month lows to end below 5400

    Nifty hits 6-month lows to end below 5400

    Bears embraced the Dalal Street on Friday by taking complete charge over bulls and forced the benchmark Nifty to shut shop below 5400 level - another important psychological level - for the first time since July 30, 2010.

    February 04, 2011 / 17:18 IST

    Bears embraced the Dalal Street on Friday by taking complete charge over the bulls and forced the benchmark Nifty to shut shop below 5400 level - another important psychological level - for the first time since July 30, 2010, despite quiet to positive global cues. Sell-off by foreign investors may be attributed as the reason behind today's crash, indicating that foreign investors are slowly pulling out money from India for investing in other asset classes.


    Bajaj Auto was the only share in the Nifty 50 & Sensex 30 shares supported by bulls while others reigned by bears. All sectoral indices slaughtered in today's carnage. The broader indices too fell but less in comparison with the benchmarks.


    Sashi Krishnan of Bajaj Allianz does not think the headwinds are over yet. He said we could see further correction in the market for a couple of reasons. "The interest rate tightening cycle is one of the reasons. Reserve Bank of India (RBI) is not over yet with the rate tightening cycle. Secondly, with the US recovering, the rupee continuing to depreciate, we may see a lot more FII withdrawals over the next few days," he explained.

    "For the month of January, we have seen the FIIs take out close to a USD 1 billion and that made the market correct about 10% to11%. We see further FII withdrawals from the market and the markets could still be under pressure. Third, globally the risk perceptions are increasing dramatically. The uprisings in Egypt and Tunisia, the oil prices crossing USD 100 per bbl
    first published: Feb 4, 2011 04:00 pm

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