The markets are set to witness choppy sessions in the next few days. Even as the benchmark indices touch a new high every day, fund managers say short-term volatility and profit booking will continue at every level.
Following the US Federal Reserve’s interest rates cut by 25 basis points to 4.5% on Tuesday, the Indian markets surged with the Nifty touching an all-time high to cross the 6,000-mark. Soon after, the index slipped on profit booking, ending the day at 5,886.45 points, down 34.20 points or 0.58%. R Rajagopal, CIO of DBS Cholamandalam MF, said, ?All events that could influence the markets are over. Even most major companies have announced their results. From now on, we may witness volatile trading session and profit booking at every level.?
Dealers also pointed out another reason for the volatility. They said foreign flows has slowed down since last couple of session and is expected to fall further following US Fed’s FOMC statement.
The 30-share Sensex crossed the 20,000-mark in opening trade. Soon after, it slipped in the red on profit booking and settled the day down 114 points or 0.57% to close at 19,724.35 points.
The market breath was also negative with 1,810 stocks declining, 914 stocks advancing and 339 stocks remaining unchanged.
HDFC Bank touched an all-time high of Rs 1,748 before closing the day at Rs 1,675.55, gaining Rs 22.45 or 1.36%.