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Markets slaughtered: Sectors to keep away from
The markets have taken a plunge this morning for the second consecutive day. So in the wake of such a bloodbath across the markets, which are the sectors you could burn your fingers with?
The markets have taken a plunge this morning for the second consecutive day. 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 market has lost 1000 points in the last three trading sessions.
There was heavy selling in scrips across sectors and the Sensex slipped below the crucial support levels of 13,000, there was broad based selling with all sector indices ending in the red.
So in the wake of such a bloodbath across the markets, which are the sectors you could burn your fingers with?
In the current market, where there is no place to hide, people should go out and buy stocks from the pharma space or FMCG because those are the defensives.
IT has fallen less because there is perceived strength in that sector. One should watch out for sectors where the gains have been maximum, where the positions are maximum and how much they could correct.
Banks have contributed to this fall but capital goods and Industrial Output numbers have also worsened the situation. There is a little bit of an interest rate scare going around in the market now, after the CRR hike. That has led to the undoing of banks, that has kept the autos under pressure as well today.
Big performing stocks like M&M have cracked quite a bit and now after capital goods and the industrial numbers, stocks like ABB coming under pressure too. So these have been the favourite sectors. The last leg of the rally was led by banks and capital goods, to a certain extent technology and even autos had started coming back after their underperformance. All of those sectors have taken a bit of a whack today.
So in the wake of such a bloodbath across the markets, which are the sectors you could burn your fingers with?
