Use correction as buying opportunity: Experts

The worsening political situation in the capital created turbulence at the markets too. The markets had gotten off to a strong start, on the back of strong global cues, but soon they started cracking and by closing bell, it slipped deep in the red. The Nifty closed at 5,085 down 101 points, while the Sensex shut shop at 17,491, down 282 points.

The markets saw a sharp cut in today's session, on account of political concerns looming large. They opened in positive, taking cues from Asia, but saw a sharp fall. Some of the Asian markets, which opened in green, were off the day's high and ended weak.

The Sensex was down over 300 points, or 2%, and is trading near the day's low. Broader markets have taken it on their chin and are the midcap and smallcap indices were down 4%. The breadth of the market is absolutely weak, with advance decline ratio at 1:10. Heavy selling was witnessed across the sectors led by realty, metals and pharma.

“There are two issues that are impacting these markets. One is the political sentiment. But in the last couple of weeks, most of the people knew about the equations between the UPA and the Left turning sour. So, I do not think that is the reason, which spooked these markets. Also, the non-farm jobs data that came in has been stronger than expected. In the last one-month, the markets have moved up assuming that the Fed will cut interest rates further. The key assumption was that the dollar will keep weakening, against the major currencies globally,” said Khade.