Nifty to trade between 6150-6270: Magnum Research

According to Magnum Research, Nifty is expected to trade between 6270 and 6150 with downward biasness.

January 27, 2014 / 09:42 IST

Magnum Research's market report:

Indian market fell more than one percent on Friday to post their biggest decline in three weeks, retreating from a record close in the prior session as rate-sensitive stocks dropped after the Reserve Bank of India governor's strong warning on inflation.

The market came under pressure after RBI's Raghuram Rajan called inflation a "destructive disease,” Lenders in India retreated on caution ahead of the RBI policy review on Tuesday. Although analysts had at first expected the central bank to keep rates on hold, the outcome is now being seen as more uncertain.

The warning was seen raising the odds of a rate hike at the RBI's policy review this week after investors had already been on edge when a central bank panel earlier last week recommended making taming consumer inflation a priority. Losses also tracked lower Asian shares, which hit their 4-1/2 month low, as disappointing Chinese manufacturing data raised concerns over the economy.

European equities closed sharply lower on Friday as a large sell-off in emerging-market currencies spooked investors. US stocks fell sharply and Treasuries rallied on Friday, with the Dow Jones Industrial Average tumbling triple-digits for a second session and posting its worst week since November 2011, as investors pulled money from emerging markets and other assets viewed as risky. Asian equities kicked off the week with sharp losses as fears over emerging markets continued to spook investors.