Nifty sees big fall on FII sale
Sensex plunged below the 27,000 mark at 26,775.69 down 431.05 points
By : DC Correspondent
Update: 2014-09-24 03:15 GMT
Mumbai: A lethal cocktail of events from US air strikes on the ISIS in Syria, heavy offloading of blue chips by FIIs and large traders, unexpected slow pace of growth in the European Union saw the Sensex collapse 431 points in the latter part of trade on Tuesday. Both the Sensex and Nifty were down below the recent high levels with the Nifty registering its biggest single-day fall in two-and-a-half months.
The Sensex plunged below the 27,000 mark at 26,775.69 down 431.05 points while the Nifty sank 128.75 points at 8,017.55. The domestic indices followed the weak clues from the Asian markets and the European markets that opened in red on unexpected slow growth and the escalating crisis in the middle-east.
Amar Ambani, head of research at IIFL said, “Going ahead, we expect markets to remain highly volatile ahead of the F&O expiry on Thursday and the ongoing geopolitical uncertainty and global factors. However, overall trend continues to be bullish, near term support for the Nifty is placed at 7,950 levels.”
“Those who had bought earlier like FIIs and large traders offloaded these shares to the public. Shares like Marico Kaya that jumped from Rs 250 to around Rs 750 in 2 months was Rs 550 today,” he said. But there will be some bounce back with buying at lower levels, he added.
Kiran Kumar Kavikondala, director & CEO, WealthRays Securities said while Chinese preliminary PMI manufacturing of 50.5 for September helped Nifty to sustain its gains and maintain the 8,100 levels the European PMI which came in at 52.3 in September triggered profit booking. The mid and small cap indices closed down around 1.88 per cent and 2.40 per cent respectively said Alex Mathews, head research, Geojit BNP Paribas Financial Services Ltd.