It has been a bit of struggle for the market. It has never got going since morning. For a minute it looked like the Osama news in the morning might lift it a little bit, but it did not. The afternoon has been a struggle to hold on to the 5700 support. Couple of times, it has dipped below that and then has managed to come back.
Banks are weighing very heavily on the markets back and it has not helped. A couple of largecap names like Reliance also started coming off. It is a difficult trudge leading up to the monetary policy tomorrow. Results on the margin have not been great. May be the policy tomorrow will decide on whether this level of support holds out for the market in the near-term. Q: Are banks the ones that are not taking the pressure in terms of earnings, but also going in to the credit policy quite nervous?
A: Results have also not been great for public sector banks. Those on the margins, plus a lot of downgrades are now kicking in, more than the policy itself. If policy was the only event, then real estate would have fallen a lot, which has not happened.
Banks have been pegging them more, than the expectations of 50 bps point hike tomorrow. It is more than just the banking system. Today, the autos are also slipping off a little bit. Reliance is not getting its head above 970-980. It is all contributing.
On the margin, the last three-four days results have also clouded sentiment a bit. It
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