The market rally in February so far has been fueled by the government’s capex plans and better-than-expected earnings, leading to buying on every dip. The cool-off in the market could be another such opportunity, say analysts.
The 30-share pack Sensex fell 400.34 points or 0.77 per cent to close at 51,703.83. The index hit a low of 51,586.34 before recovering slightly. Its broader peer NSE Nifty fell 1.04.55 points or 0.68 per cent to 15,208.90.
“The Indian market opened low replicating the weak global trend due to rising bond yield and inflation. PSU Banks which were in the limelight on reports of privatisation continued to ride their uptrend. Mid and small-cap stocks remained firm and outperformed the benchmark indices,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance
- BOI, CBI, IOB and Bank of Maharashtra rally 20% each on privatisation hopes
- Nestle India drops 3% after Q3 show, emerges as top Nifty loser
- India VIX, the measure of volatility, falls 2% to 21.33 level
- IPO watch: RailTel subscribed 5.68x; Nureca 36.95x so far
- HDFC twins biggest drag on Sensex, Nifty; RIL provides support
