Nifty breaks 8300, Sensex falls 100 pts; Tata Motors gains 2%

Moneycontrol Bureau9:32 am Markte Update: Equity benchmarks extended sell-off with the Nifty breaching 8300 level for the first time in last five sessions. The Sensex fell 108.71 points to 27092.78 and the Nifty declined 33.50 points to 8304.40.The market breadth was weak as about 839 shares declined against 653 advancing shares on BSE.9:25 am FII View: Neelkanth Mishra of Credit Suisse says since the bottom formed on February 25, the Nifty is up 20 percent, with most of the performance due to P/E expansion.

Nifty P/E (also MSCI India P/E) is now much above past averages. They have been higher only for short periods in the past and near market tops, he adds.

He says, "The precipitous fall in global yields in the last two weeks makes us cautious. While equity markets seem to be unperturbed till now, we are concerned not just for what low yields signal about future global growth, but also the risk of unforeseen developments."

Mishra says he remains positive on the economy and on markets over 12-24 months, but the likelihood of a lacklustre relative performance near term is rising.