The Indian stock markets begun the new year on a depressing note. After an unabated three-week rally saw the indices signing off the year 2010 on a high, the rising fears of an interest rate hike by the RBI at a policy review scheduled later this month came back to spook the street.
The BSE Sensex tumbled 817 points or 3.9% to 19,691 and the NSE Nifty tanked 229 points or 3.7% at 5,094 to register their biggest decline in two months, with all the sectoral indices ending in the red. The rate-sensitives did a bulk of the damage.
But the market downside may be capped as the upcoming result season, beginning with the announcement of the Infosys numbers on January 13, may attract buying interest. The sentiment turned shaky immediate thereafter, leading to a soft decline on three out of five remaining trading sessions and culminating in the 2% drubbing in disastrous Friday that dragged the Sensex and Nifty below their psychological levels of 20,000 and 6,000 respectively.
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