It was a bad day for the market, though it didn't look all that bad in the morning. The global markets were surely down overnight and we started about 20 odd points lower, but as the day progressed, it was quite apparent that the broader market continued to weaken.
Mid-caps and small-caps started selling off. Large-caps were not much better. The Railway Budget only added to the gloom and then in the afternoon as European markets opened up, they were awash in red. They were 2-3 percent down while we were closing and that was the last nail in the coffin. So, one-by-one important levels kept getting taking out. First it was 5,820, then 5,800 followed by 5,780, the last hope of the bullish traders. We closed around 5,760. So, a serious knock has happened for the market today.
The mid-cap index was down two percent, so that was even worse. All of this was happening on higher-than-usual trading volumes. The decline was led by Oil and Natural Gas Corporation (ONGC) and Reliance – the two heavy oil and gas stocks. Metal stocks like Hindalco, Tata Steel looked very vulnerable. Capital good names like Larsen and Toubro (L&T) and Bharat Heavy Electricals (BHEL) were down as well. Coal India, ICICI Bank too were very vulnerable today.
It is only Bharti which did quite well after the poor performance of the spectrum auction yesterday. Front-line information technology (IT) continued to outperform the market with stock like Infosys and Tata Consultancy Services (TCS) doing very well. Mid-caps were very bad. The market breadth was extremely poor today.
And some serious damage happened in the railway stocks as market figured out that there was nothing in the Railway Budget which was pro growth or pro investment. Most of those names like Titagarh, Kernex, Kalindee sold up between 8-10 percent.
Also, a lot of damage was reserved for the real estate space today. Stocks like DB Realty, Indiabulls Realty and Housing Development and Infrastructure (HDIL) were all down. A couple of influential stocks like Educomp was down 12 percent, Jet Airways was down 11 percent. So, generally it was a very bad day for mid-caps. It is not worth talking about the winning list because that’s very small in number.
We saw stocks like ABG Shipyard and Idea about being the only stocks which held out. It was a disastrous day for the market, no question about that.