5th August 2011 Closing Market Updates 15:46
Indian market hit a 52 low because of US market and Asian market meltdown.Nifty bounced back nearly 100 points from its day low of 5116.45 and ended at 5224 with a 107.75 points' fall. As stated earlier, it has not breached 5165 level on a closing basis and closed above the level so one can start value buying from current levels. Sensex collapsed by 354.49 points and ended at 17338.69.
Indian equity market triggered a sell off 4% in the morning session as horrible drop in US stocks and commodities which may threaten to squeeze life out of an already faltering US economy, with deal-making, investment in plants and equipment, and capital raising at risk of slowing down or freezing up. It will likely further damage consumer confidence, already jarred by the toxic battle in Congress over the government's debt ceiling and by high unemployment, and feed fears another recession is just around the corner.
Last night, US markets plunged sharply, with the Dow down more than 500 points, in its worst one-day drop since December 2008. All three major averages tumbled into negative territory for the year as investors were rattled over an intensifying global economic slowdown and ahead of the widely-followed monthly unemployment report.
European markets are also not showing a different picture and tanked today by 2%.
In Indian market, stocks like Tata Coffee, Indiabulls Power, Indiabulls Real Estate, Essar Ports, Adani Power, United Spirits, Fortis Healthcare, Orchid Chemicals and Jaiprakash Ventures to name a few. These shares have fallen between 4-7%, as the promoters will have to either pledge more shares or repay some of the money that they have loaned.There are no indications as of now that these promoters are facing any liquidity crunch as of now. But given the panicky mood in the stock market and the high cost of funds, it is only natural for bears to go after such stocks. Investors should be keen on such stocks.
All BSE Sectoral Indices ended into red zone.Worst hit was IT sector by 3.91% followed by Teck,Power and Realty.
In Nifty50 stocks, just 6 stocks gained today and which were BPCL< Hindalco, ONGC, IDFC, Jindalstel and Cipla.BPCL was the top gainer by 1.87% and ended at 701.5
Relinfra was the top loser and was down by 7.35% and ended at 524.1
Advance Decline Ratio was negative by 6.27 : 1 as 1254 stocks declined and 200 stocks gained today on NSE.
Major Global Indices :
HangSeng : -938.60
Nikkei : -359.30
FTSE : -157.33
CAC : -44.60
DAX : -176.51
Dow Futures : -80.00
Nasdaq futures : -15.25
Indian equity market triggered a sell off 4% in the morning session as horrible drop in US stocks and commodities which may threaten to squeeze life out of an already faltering US economy, with deal-making, investment in plants and equipment, and capital raising at risk of slowing down or freezing up. It will likely further damage consumer confidence, already jarred by the toxic battle in Congress over the government's debt ceiling and by high unemployment, and feed fears another recession is just around the corner.
Last night, US markets plunged sharply, with the Dow down more than 500 points, in its worst one-day drop since December 2008. All three major averages tumbled into negative territory for the year as investors were rattled over an intensifying global economic slowdown and ahead of the widely-followed monthly unemployment report.
European markets are also not showing a different picture and tanked today by 2%.
In Indian market, stocks like Tata Coffee, Indiabulls Power, Indiabulls Real Estate, Essar Ports, Adani Power, United Spirits, Fortis Healthcare, Orchid Chemicals and Jaiprakash Ventures to name a few. These shares have fallen between 4-7%, as the promoters will have to either pledge more shares or repay some of the money that they have loaned.There are no indications as of now that these promoters are facing any liquidity crunch as of now. But given the panicky mood in the stock market and the high cost of funds, it is only natural for bears to go after such stocks. Investors should be keen on such stocks.
All BSE Sectoral Indices ended into red zone.Worst hit was IT sector by 3.91% followed by Teck,Power and Realty.
In Nifty50 stocks, just 6 stocks gained today and which were BPCL< Hindalco, ONGC, IDFC, Jindalstel and Cipla.BPCL was the top gainer by 1.87% and ended at 701.5
Relinfra was the top loser and was down by 7.35% and ended at 524.1
Advance Decline Ratio was negative by 6.27 : 1 as 1254 stocks declined and 200 stocks gained today on NSE.
Major Global Indices :
HangSeng : -938.60
Nikkei : -359.30
FTSE : -157.33
CAC : -44.60
DAX : -176.51
Dow Futures : -80.00
Nasdaq futures : -15.25
Sensex bounced exactly from the level of 16990, I had mentioned that sensex could hit 16969, sensex bounced exactly from 16990.
ReplyDeleteWhat next?
August will be volatile month and will see turbulent markets, the present correction would end in September, when markets take off in a big way.
To get accurate forecasting please visit http://www.kalpeshmaniar.com