Sensex, Nifty, Midcap under pressure; bank, oil stocks drag

The Indian equity market is down in early trade on the back of a weak handover from US and China. Both the indices are down 1 percent but this is just the market getting hyper, says Samir Arora of Helios Capital.

The market remained under pressure in morning trade with the Sensex falling 370.51 points or 1.44 percent to 25349.07, dragged by banking & financials, auto, oil, capital goods and FMCG stocks. The Nifty continued to hover around 7700, down 118.45 points or 1.51 percent to 7700.15.

The broader markets, too, plunged 1.5 percent as about 1370 shares have declined against 355 shares advanced on the Bombay Stock Exchange.

At the moment, 7500 looks like the Nifty bottom, though one does not know how market will behave in the face of volatility, says market expert Ambareesh Baliga.

At the same time if one sees to 15 percent gains during a bounce, one must book out, says Baliga. "Then sit on cash until there is a crack again." He expects the bull run to be steady after 2-3 months depending on Fed statement.

Read More – Sensex n Nifty Tips