- Wealth PMS
The announcement of 0.50% increase in interest rates by RBI caused the market to tank, losing over 100 points in the day, or -1.86%. Volumes at 12,200 cr. looked good, but remember this is expiry week and arbitrage opportunities abound. FIIs sold just 177 cr. and DIIs were marginal net buyers of 31 cr. – so much of the panic was from retail. The Nifty is firmly ensconced between the 50 and 200 DMAs and at a P/E of >20.
Bonus: The sectoral moves on a daily chart – the worst today was realty with Infra next, followed by banks. IT was the least hurt (it’s also the least leveraged)