Sensex slips below 17,000, cap goods under pressure
Speaking to NDTV Profit’s Ira Duggal at the World Economic Forum in Davos, Chaudhuri said that the policy rates or OMOs do not have a lasting impact on the interest rate environment; however it is important that they come down. "
Selling pressure has intensified on the bourses with the Sensex falling below the key 17,000 mark, down over 230 points or 1.4%, and the broader Nifty index falling over 70 points to slip below the key 5,150 levels.
Analysts attributed the sharp fall to profit booking. India's benchmark indices have seen over 10% rise in the first month of 2012.
"We have witnessed close to 800 points rally in less than 1 months’ time... So, it is obvious that the markets should correct. Fundamentally, things haven't changed much. Only the fear factor has gone away to a great extent... A correction of 150 points is possible and 5,100-5,150 are good levels to enter the markets again," Deven Choksey, MD at KR Choksey Securities told NDTV Profit.
Heavy equipment maker BHEL (down 8.3%) extended losses after the company reported a fall in order inflows in the third quarter. BHEL is unlikely to meet its full year order guidance of Rs 55,000 crore. BHEL's underperformance had a negative affect on the cap goods index, which plunged over 2.5% on the Bombay Stock Exchange, the most among all other sectoral indices.
Sterlite (down 4.5%), Bharti (down 3.5%), Jaiprakash Associates (down 3%), IDFC (down 3%) and M&M (down 3%) were the top losers on the Nifty index. Reliance Power (3.5%) and Sun Pharma (2%) were among the 12 gainers on the Nifty.
The market breadth continued to be under pressure as 65% stocks traded with losses on the broader BSE 500 index.
