Nifty ends below 6000; rate sensitives, metals, telecom dip
20 Oct 2010
Equity benchmarks maintained downtrend on the back of sell-off in metal, financial, realty, FMCG and auto companies' shares. The 50-share NSE Nifty closed below the 6,000 mark for the first time in last 15 sessions.
Even though the markets are currently going through a turbulent phase, Jyotivardhan Jaipuria, Research Head at Bank of America - Merrill Lynch believes that the correction will be shallow and there will be no deep cut.
Jaipuria said, ''Correction will be more of a shallow affair. I don't think we will have a steep correction or a big crash. It will be governed by global factors. We are again getting into macro in the market for probably 15-18 months.''
According to him, quantitative easing (QE) and dollar movement will be the key triggers for markets. Jaipura explained that once we know the size of QE2 is going to be, it will determine the future course of markets.
However, heavyweights like Reliance Industries, NTPC, Infosys and L&T were on buyers' radar, which capped the losses to some extent.
The Sensex was trading at 19872, down 111 points and the Nifty was at 5987, down 43 points. However, the Nifty October futures ended at 31 points premium.
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