Black Friday for our markets

This is a black Friday for our markets, no other word to describe it. It’s been completely bad, we are off the lows of the day by a little bit but a small comfort that one because it’s down still 650 points on the Sensex. 4740 is on the Nifty so 4800 has broken and the market just cruised through that supposedly big support level and the midcap index is staring at a 4.5% of a loss. 

There are only 60 stocks in the market which are green at this point in time, very rare to see stocks in the green and the liquid midcap space, the average cuts are between 8%-10%, so this has been an absolute horrific day for the traders, and for the people who are holding some of those momentum stocks. One of the worse sessions of trade, which we have seen in recent times.

Q: In the last lap of an extremely rough week itself?

A: It has been, we are 10% down of the week for the large cap indices, it doesn’t get worse than that, when in 4 trading sessions you get pegged back about 10%, for the overall market and the correction is now really reaching monstrous proportions because what started at 6300 and 21,500 for the Sensex, we have corrected about 27%-28% from the peak of the large cap indices and many stocks have not that corrected anywhere near that. So many of your relatively stronger stocks, Lever, HDFC,ITC, L&T I don’t think have corrected anywhere near 30%, so many other largecap index names have fallen 40% plus. So this has been a correction of monstrous proportions. Forget about midcaps, the way some of these liquid names are getting hammered, it must be absolutely bleeding for the traders out there and people who own momentum stocks. It’s been an absolute blood bath out there. I don’t know where it’s going to end but today’s looked very bad.