Nifty looks tired; currency remains a problem

Nifty continued its pullback for the second day and dropped around 40 points to close just above 6,100. Even, the rupee remained around 55 to the dollar said CNBC-TV18's, managing editor, Udayan Mukherjee.

Today, turned out to be a disappointing day for the market. The Nifty in the morning started a bit weak, then recovered and looked like it might move higher but in the last one hour of trade, market started slipping once again. The disappointment was once again led by the banking stocks and the Bank Nifty was down 1 percent. Other cluster of largecap names like National Thermal Power Corporation (NTPC), Jaiprakash Associates, Tata Motors, DLF, Tata Steel too looked quite weak today. However, it could have been far worse for the market if the CNX IT Index names like Tata Consultancy Services (TCS), HCL Technologies and Infosys had not held the Nifty together. Coal India too had a good session. The midcaps too had a disappointing session. Voltas and real estate stocks like Unitech and Housing Development and Infrastructure Ltd (HDIL) were down. Fortis too came off quite a bit and JM Financial looked slightly nervous after its big rally. Meanwhile, there were some winners like Adani Power which had a good run. Then stocks like Manappuram General Finance came back strongly and Crompton Greaves, Dish TV also did quite well. The currency remains a problem because despite the pullback in the dollar index, the rupee stuck to the level of 55 to the dollar mark, which is not a great sign because that is tying-in with the recent nervousness that has crept into the Nifty. Although the Nifty has not lost a lot of ground, only about 100 odd points from its recent peak, but for the second day running it did look quite tired.