It was a bad start to the week. Picking up those negative cues from Asia, markets started selling off through the day, aided by that underlying fatigue seen last week. The High Court ruling against Reliance Industries put heavy pressure on that stock dragging the benchmarks with it. Apart from oil and gas, commodities went home with roughest cuts. The Nifty failed to hold on to 4,500.

Udayan Mukherjee, Stocks Editor, CNBC-TV18, does not expect the market to fall below 4,400-4,500. He expects it to bounce back from current levels.

Here is a verbatim transcript of Udayan Mukherjee’s comments on CNBC-TV18.

The Nifty gets a Reliance shock today, plunges 100 points to close below 4500. It is not just Reliance and RPL which lead the index down today, metals stocks got dragged quite a bit lower.

It is not just India, global markets too are seeing some signs of turbulence. Taiwan led a sell-off in the Asian markets today and Europe was quite weak while India was closing trade.

It was like a double-whammy, there was Reliance then there was the global market picture as well.

It was bad timing for the Reliance news to come out today because the market had been struggling a little bit for the last few days. There were clear signs of fatigue over the last three sessions and today we started sluggish on the back of Asian cues and then out came the Reliance news and that did not make matters any better. The only ray of hope was that shortly after the Reliance news came in the market showed some signs of resilience. It almost appeared that it could rise in the face of the bad news but that was not to be so.

Today, we have a closing below 4500 Nifty and the breadth was bad once again. Volumes are okay, so the market is still drifting down. The jury is out on whether we still have a deep cut from here or whether people will start talking about 4,000. But the market will not fall more than 4,400-4,500 and will bounce from somewhere close to current levels.

We will find out the answer to that, but today as you said it was a combination of the innate fatigue of the market over the last few days. Global cues have been leading us down as well as the Reliance news which knocked that heavyweight down.

source: moneycontrol

Tags: bse, moneycontrol, nifty, nse, Reliance Industries, reliane petroleum, sensex

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