Nifty free fall continues, worst not yet over

MUMBAI (Makemystocks): Indian stock markets collapsed after today's RBI Monetary Policy announcement. Market was trading positively before RBI's policy but huge selling  in the afternoon session changed the situation. Nifty settled below 4700 and thereby gave very feeble weekly close.

The Reserve Bank today kept interest rates unchanged and signaled that it could cut key policy rates from now onwards to control falling growth consequently keeping a close watch on inflation.

The economic growth has come down to 6.9% in the second quarter of the current fiscal from 8.1% in the corresponding quarter in the previous financial year even as inflation remains close to the double-digit mark. The industrial growth registering a negative growth of 5.1% in October.

The S&P CNX today gave flat open at 4752 rising from there Nifty touched the high of 4819. However, free fall came in Nifty which dragged Nifty all most 200 points from days high and touched the low of 4628 on huge selling after RBI's monetary policy. Nifty settled near days low at 4652 down by 95 points.

Nifty is still expected to continue its downtrend , near term support for Nifty comes around 4400.

All the sectoral indices settled in negative zone. Capital Goods, Banking and Realty suffered the most.

Out of 50-share S&P CNX Nifty pack, 10 scrips advanced while 40 scrips declined. LT was up by 6.2%, PNB was up by 5.59% and Axis Bank was up by 5.17% were the top gainers from the Nifty pack.

Gail was down by 4.06% , HCL Tech was down by 1.27% and Dr. Reddy was down by 1.25% were the top losers from the Nifty pack.

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