Global markets strong; Nifty struggling to stay above 6k

It a start to an interesting week because on Friday the Nifty witnessed bad close, but global markets have perked up over the weekend again, the Dow is above 14,000. On one side global markets and liquidity are pulling us higher on the other side our market is looking very tired and it is becoming a struggle to even stay above 6,000 Nifty, said CNBC-TV18's managing editor Udayan Mukherjee.

Also read: Morning capsule: Cues that may push Nifty to 6k again Friday’s close was terrible. The market did not lose too much, but it is a close below 6,000. So, the global rally comes at a good time to just pull us out of that mess that we seem to have got into last week. We had a lot of trouble with the mid-caps, the week before that. However, towards the end of last week we saw lot of the large-caps getting into trouble like Tata Motors, JP Associates and Ambuja Cements’. No idea about where that selling is coming in from. Domestic institutions sold more than Rs 1,000 crore. So, maybe as the market gets higher we are seeing a lot of liquidation coming in. Even from the large domestic mutual funds and insurance companies. It remains a strange market out here because we have had a fairly weak looking screen, first the mid-caps and now the large-caps. At a time when flows are globally quite strong and global markets are tearing ahead. So, let’s hope we are not into a situation where India becomes a bit of an underperformer as compared to other global markets. Everybody even global capital will be watching that India is not quite performing like it was even a few months back. It has sort of lost its way and lost its momentum a little bit. So, this week will be interesting because despite of very poor close last week for our market, global markets seem to be resuming a lot of momentum of their own. The US market has been a leader market through all of January, not just the way it closed on Friday. Last year was a story of India getting disproportionately large flows. All the talk at the start of the year was centering on how investors will take money out of US bonds and put it into equities. However, the way the US market is now tearing ahead, it could easily be the case that a lot of the capital now wants to go back to the US and chase performance there, rather than coming into market like India. Particularly, since India seems to be losing momentum here. So, we are still in a great liquidity environment. One can see that in price of crude. It is nudging USD 117 per bbl. However, will that money come into Nifty or will it still chase the S&P and the dow that remains to be seen. We are in an exceptionally strong global equity environment. Whether it is a very strong equity environment for emerging markets like ours or is it for the western developed markets this time that we will have to figure out.