The market received a battering today with the Nifty in intraday trade slipping well down below the psychological 5500 mark. Consistent selling was seen in financial, capital goods and auto stocks Heavyweight Reliance Industries too dampened sentiment as it slid to a 52-week low.
In an interview with CNBC-TV18, Deven Choksey, MD, KR Choksey Shares & Securities said that it was a clear case of FIIs selling and investing in dollar assets. He said a close below 5550 could probably take the Nifty further down to 5430 levels. He however expects the markets to pull back from these levels. "Somewhere down the line I think you are going to see some contra buying taking place," he said. Choksey sees 5700-5770 as the range on the upside for the Nifty. Below is a verbatim transcript. Also watch the accompanying video. Q: This is quite a shocker. Did one expect that what many explained yesterday as perhaps end of contract pressures is now turning out to be some kind of a full blown selling? A: Yes, I think what one is experiencing is that in the market which amount of basket selling is happening. As a result of which one is unable to understand from which corner this particular fall is being driven by. But the fact is that I think some of the heavyweight stocks are basically becoming victims just because of the sheer amount of weight allocation given to the basket. So I think it is clearly seen as an action from the FII side of taking money out and investing in dollar assets. Q: We have not seen that big FII numbers so far. I think in the first week of January we did see somewhat big numbers, but even those were not eye popping. For the rest of the month it was okay, a little bit here, some days there was even plus, itDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
