Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty fell sharply for the second consecutive session on Jan 19 due to weak global cues. Nifty opened lower on Jan 19 and made an intra day bottom at 1250 Hrs but the bounce from there seems feeble. At close Nifty was down 0.96% or 174.6 points at 17938.4.
On a day when the volume son the NSE were a little higher than the recent average, Power, Oil & Gas, Metals and Auto indices gained the most while IT, FMCG, and Telecom indices fell the most. BSE Smallcap index ended flat while Midcap index fell 0.34%.
Asian markets were all in the negative amidst growing fears about the Federal Reserve's plans to fight surging inflation by ramping up interest rates. Rising Crude oil prices and resumption of selling pressure by FPIs are also playing a role in the weakness in Indian markets. Traders are opting to take profits ahead of the Union Budget on Feb 01 and US Fed meet outcome on Jan 26.
European stock markets were muted on Wednesday as government bonds in the region came under fresh selling pressure, with Germany's benchmark Bund yield turning positive for the first time since 2019 on expectations of tighter monetary policy.
Nifty fell for the second consecutive session but ended a little above the intra day low. Advance decline ratio is below 1:1 but better than the previous day. If western markets stabilise today, we could see a better opening on Jan 20. 18081-17813 is the band for the nifty in the near term.