Mumbai, March 11 (IANS) The Nifty opened positive on Monday, but soon witnessed profit booking amid weak global cues and SEBI warning over a midcap-smallcap rally, Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, said on Monday.
The index closed near the day’s low with a loss of 161 points or 0.7 per cent at 22,333 levels on Monday. The broader markets, especially the smallcaps, bore the brunt and were down 2 per cent, he said.
On the domestic front, sentiments dampened after the SEBI chief highlighted irrational run-ups and expensive valuations in small and midcaps.
Also, stress test disclosures for small and midcap funds are to be announced on March 15, which is likely to keep the pressure on the broader market in the near term, Khemka said.
“Going ahead, we expect the consolidation to continue in the market with large bouts of volatility. We recommend switching to largecaps where the risk-reward is more favourable,” he said.
Barring healthcare, all sectors ended in red on Monday, as the market turned cautious ahead of key inflation data from India and the US this week, Khemka said.
Deepak Jasani, Head of Retail Research at HDFC Securities, said the Nifty ended lower on Monday with indices continuing to fall from the opening time with little bounces in between. It was a broad-based fall.
Cash market volumes on the NSE dipped below Rs 1 lakh cr at 0.99 lakh crore, while the smallcap index fell more than the Nifty even as the advance decline ratio fell to 0.24:1, Jasani said.
The European stock markets fell on Monday, continuing the losses seen in Asia after Friday’s weakness on Wall Street, ahead of the release of key US inflation data.
Growing uncertainty over US interest rates saw traders lock in profits at record highs, especially in the technology sector, Jasani said.
–IANS
san/arm
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
