Markets again on the second consecutive day traded and closed under pressure. Sensex closed at 19,177.76, down 286.06 points on Wednesday, while Nifty tumbled by 86.65 points to end below 5800-mark at 5,770.90.
Since the start of the session itself, the markets were trading under pressure. Realty index was most under pressure as it fell over 4.7 per cent followed by Metal & PSU Index which fell nearly 3 per cent each. FMCG and Healthcare were the only sectors which managed to close in green. Both Indexes closed nearly 0.25 percent up. Major reasons that had an impact over the markets on Wednesday included recent weakness in rupee, rise in prices of crude oil in the global markets and weak cues from European markets.
Rupee again on Wednesday fell below 60 per dollar mark and finally closed at 60.10 per dollar. With rupee again slipping below 60 and the rise in the prices of oil, fears of increase in country’s Current Account Deficit (CAD) further dampened the investor sentiments, which continued to whatever little profits they had made in the recent rally. On the global front, due to the political uncertainty in Portugal, European markets were trading nearly 1.50 percent down.
Now in the current situation the worst hit are the retail investors and in order to understand what strategy they need to follow, The Pioneer took a poll from market experts. Fundamental Analysts from SMC Global, BNP Paribas and CraFt Wealth Management feel that markets will continue trading under pressure. Real Estate, and PSU Banks are the two sectors, analysts believe, that will be the worst performers.
On the other hand, technical analysts from SMC Global and Anand Rathi Securities stressed that in the short term, 5700- 5740 will act as a major support for the Nifty 50 but if it slips down these levels then they expect Nifty to fall again to the levels of 5550- 5580. Thurday’s session will be a of prime importance and all eyes will be on whether Nifty slips bellow 5700 levels or buying again is seen around the support levels. Also rupee movement will again act as a decisive factor, if it continues to weaken again, markets will feel its pinch.