Bloodshed session on Dalal St; FII pullout fuelled crash
CNBC-TV18's managing editor Udayan Mukherjee wraps up the market events of the day. He said that the market saw the 500-plus points fall on the back of US Fed's statements on tapering QE by year-end.
June 20, 2013 / 20:18 IST
The market tanked over 500 points reacting to US Federal Reserve’s statements on tapering the asset purchases by the year-end.
CNBC-TV18's managing editor Udayan Mukherjee said that the market had a bloodshed session on the Dalal Street. He added that strong FII pullout fears led to the lowering of the prices. On the rupee’s fall he said, "It was a terrible day for the rupee – flirting very closely with that 60 to the dollar mark."Below is the edited transcript of his market commentary on CNBC-TV18.It was mayhem from the word go. The day started with almost a 100-point gap. It kept on losing ground through the session finally closing at the lowest point of the day at around 5,650. So, it was quite a bloodshed session Dalal Street The fears of foreign institutional investors (FII) withdrawal led the stock prices to lower levels today. Some of the blue chips, where FIIs have large holdings like ICICI Bank, ONGC, ITC, HDFC, Reliance, suffered the most.High beta (stocks) got smashed out of shape. Stocks like DLF, JP Associates, metal stocks like Hindalco, Tata Steel and JSPL got absolutely hammered. Very few stocks stood out on the positive side. The rupee started the day at an alarming level of 59.90 to the dollar; pulled back a bit on some buying, but then went down once again. So, it was a terrible day for the rupee – flirting very closely with that 60 to the dollar mark.Mid-caps got completely hammered across the board. The breadth was terrible, volumes were large today and anything which was high beta in nature i.e. infrastructure, real estate, metals, even public sector banks had a really nasty fall.Stocks like Sintex, Renuka, PFC, Adani Power, GMR got some special punishment on the way down.Global markets were down across the board. Asia had a really bad session after the Chinese purchasing managers index (PMI) numbers early in the day. Europe opened up extremely weak while we were trading.Emerging market currencies had a real bath. Gold whacked and ended below USD 1300. So, nothing was spared. India was not alone in its pain; it was a global phenomenon today in that sense.
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