MUMBAI: Indian markets shrugged off the Fed rate hike effect on Thursday but lost its nerve on Friday with benchmark Sensex falling close to 1.9 per cent or 689 points to close at 35,742 and Nifty 1.8 per cent or 197 points to close at 10,754. Indian markets showed a seven-day strong rally enthused by the fall in crude oil prices, indicating improving macros.
But, the global economic worries weighed heavy on markets overtaking the expectations of local market scenario, improvement in credit flows and government spend as nation gets into election mood.
“The earlier support of 10,900 has now become resistance for the Nifty. Any level above 10,900 would resume the uptrend. Considering long build up in the Bank Nifty Futures’, it is likely to outperform Nifty, we believe. Mid-cap and Small-Cap Indices can continue their outperformance for the coming days, and that is where traders should focus,” said V K Sharma, Head, PCG & Capital Markets Strategy, HDFC Securities.
Indian markets were taking a cue from the overnight fall in Dow Jones, and the Asian markets that feared the US-China trade tensions rising again.
“Tracking weak global cues, as Dow Jones tumbled another 2 per cent to close at 14-month low, domestic benchmark indices posted their biggest fall of the week. Weak global cues, threat of the US government shutdown and hike in US Fed rate have all contributed to the free fall of markets around the world,” said Yash Pratap, Research Analyst, Fundamental Research Desk, Choice Broking.
