Sensex dips after a strong 5 day rally

After rallying for 5 days, the bear has been successful in restraining the bull. The SENSEX on Tuesday at 14.47 pm was down by 57 points and stands at 26694.25. The 5 day rally was largely due to better results posted by the listed Indian companies and also due to strengthening of US dollar and global markets trading in green.

But however the rally has been short lived as the SENSEX and Nifty, the major indices of the Indian equity market turned red on Tuesday.

Sentiments of Fed rate hike in the coming months and the strengthening of dollar against other currencies have been the major triggers for such a downfall in the market. The Asian market on Monday had opened positive as the major US and London exchanges were closed on the eve of public holidays. 

European markets traded marginally lower as investors digested the prospect of a June US interest rate hike and key risk events this week including a European Central Bank meeting.

The RBI bi monthly policy is expected to be declared on June 7 and if RBI does not come up with a prospective rate cut , then the markets are expected to be choppy in the near future.

The Asian stock indices Shanghai, Hang Sang and Nikkei amid consolidation have managed to close positive.

Tata Motors DVR was amongst the top gainers which gained almost 11 per cent and Tree house education was the largest loser, which is down by 15 per cent on the BSE. However, the banking index has managed to remain green and has closed at 6256.79, up by 16.21 points.

Sensex on Tuesday closed at 26667.96 down by 57.64 points and Nifty closed at 8160.10, down 18.40 points.