How they fared: The good, bad and ugly

ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets ABB BSE | NSE 25/05/12 Are Mutual Funds betting on ABB? Other Stocks in this news Ashok Leyland | Canara Bank | Housing Development Finance Corporation | Hindustan Unilever | Hindustan Petroleum Corporation | Industrial Credit & Investment Corporation | Infosys | ITC | Mahindra and Mahindra | NTPC | Oil and Natural Gas Corporation | Punjab National Bank | Reliance Industries | Siemens | State Bank of India |

It was yet another bad session for the Indian markets as the free fall continued, triggered by a sharp fall in the industrial output numbers. It ended in deep red replicating yesterday's loss but pulling away from the day's low. The Sensex closed at 12,995.02 down 404.41 points or 3.02%, and the Nifty down 132.60 points or 3.44% at 3716.9.

 

Bears have complete hold of markets and the fall today was more ferocious than yesterday's downward spiral.

BSE capital goods index down 5.5%; ABB and Siemens are down .BSE auto is in red by 4.3%. Ashok Leyland and M&M are also down.

 

BSE Bankex is down by 4%; PNB and Canara Bank are also in red. The other heavy weight which are trading low are Hindustan Lever , Reliance , Tech major I nfosys , ITC and refinery major HPCL  

Midcaps were perhaps the hardest hit. In large caps, when stocks like ABB, NTPC , Reliance, Infosys, SBI fall beyond the point, there are institutional buyers which come in because they see value.

However, outside the Index, when some of these non-Index stocks fall because of technical overhearing on the Futures and Options market, they tend to fall more sharply because there the institutional buying probably takes longer to come in.

"Reliance and ONGC are the two bellwether stocks of the heavy weights, which have the capacity to move the markets, along with Infosys," says Vidur Pendharkar  of Religare Securities.

Bankex was the hardest hit. But Sajiv Dhawan of JV Capital says, "look at the ones which has taken a biggest beatings, look at the ones which have some fundamental intrinsic value, if you are buying banks look at the frontline banks like State Bank and ICICI and HDFC ."

"Obviously the way the stocks have fallen is going to scare most investors and even by everyone now, downgrading or probably talking quite negative of banks at least on the short run. That does represent an opportunity I feel in the longer term and medium term, it's the sector which has over the last six months outperformed, it has done very well," he adds.

"I would say that what I am actually expecting I have done some cycle studies on the basis of that I am expecting 14th or 15th to be the short-term bottom. So chances are that we might actually hit a bottom around that level and if you have to talk about tomorrows trading idea, since we have closed at 2/3rd of the days range chances are that this downswing is likely to continue but I have seen after a couple of days of major fall on the 3rd day or on the 4th day in this case maybe this momentum will actually reduce because I tend to think that the level of 12800 to about 12700 will definitely come in with some buying interest" says technical analyst Rajat Bose.

By Sayoni Sinha ( with inputs from CNBC-TV18)