The Sensex & Nifty has fallen sharply on the back of selling witnessed across all Asian markets.
"Since most Asian markets are importers of crude the impact of rising crude prices and rising Dollar Index will weigh on their Trade Balance. Amongst Asian markets India is the highest importer of crude after China hence the impact on India’s Trade Deficit is very high," Rusmik Oza, Senior VP (Head of Fundamental Research) of Kotak Securities said.
FPIs are selling in emerging markets which is visible in India also. Nifty has broken the 200 DMA placed at 10,777, which has intensified the selling from market participants. Also, heavyweights like Reliance and few more stocks that had led the last 1,200 points rally in Nifty from 10,500 to 11,700 are the ones that are correction sharply hence the impact is higher in today’s fall.
"If Nifty sustain below the 200 DMA for more than a week then the floor can shift to 10,000 on the downside," he said.
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