The market did not have a good day and the closing was not great, below 5700, high volumes, poor breadth with the mid-caps and small-caps getting completely clobbered today. There is a probability that the market might be getting oversold.
The market did not have a good day and the closing was not great, below 5700 -- high volumes, poor breadth with the midcaps and smallcaps getting completely clobbered today. There is a probability that the market might be getting oversold.
The Nifty might have got away with a 50 point cut, but the broader market damage was far more intense and it was the Bank Nifty, which did the market in.
ICICI Bank traded below Rs 1,000 for the first time since October last year which was a bad fall. State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), did quite poorly today.
Infrastructure was the other pocket that got singled out for punishment, Reliance Communications, Reliance Power and then Reliance Infra led to a big fall in infrastructure stocks across the board. Even names like JP Associates, Bharat Heavy Electricals (BHEL) and Larsen and Toubro (L&T) were not spared.
Cement had a bad day. ACC, Ambuja and UltraTech were all down sharply and then individual losers like IDFC, Bharti, could not help the cause of the index.
It is back to defensives for the index. Hindustan Unilever (HUL) was the shining star today. Pharmaceutical stocks continue to do well. Names like ITC and Asian Paints were not too bad.
The market lost its nerve, cyclicals are out of fashion and it is rushing back into some of those defensive sectors like IT, pharma and fast moving consumer goods (FMCG) again.
The breadth of the market was terrible today, one advancing share to five declining names. The mid-cap index was down over two percent.
Housing Development and Infrastructure (HDIL) was down more than 20 percent on a Credit Analysis and Research (CARE) downgrade. There were fears and rumors about its balance sheet again.
Manappuram, in the past two days that stock has lost about 35 percent, a huge carnage. Delta Corp was down 15-16 percent today which is another big casualty.
Infrastructure across the board, GVK, IVRCL, Punj Lloyd and Lanco collapsed today. Unitech, HDIL and Indiabulls Real Estate and then stocks like Orchid Chemicals, Pantaloons, Renuka Sugars, Core Education all got hammered today.
It was a terrible day for the market but is it getting oversold? It is the moot point because it has been a one-way decline from 5900 plus all the way to sub-5,700. So, we need to be aware of the probability of the market getting oversold, but otherwise there seem no exhaustion on the downside today.
ADS BY GOOGLE
video of the day
Short term correction likely; US rate hike risk seen: Ambit