27/08/2013
While the 30-share benchmark cracked nearly 500 points, the beleaguered Indian rupee visited yet another life-low of 65.87 per dollar. Rupee has fallen nearly 4 percent in the last three sessions. Barring health and IT sector indices, all others are trading below their 200 DMA.
Bank Nifty took the biggest hit with private banking space getting smashed out of shape. HDFC twins cracked over 6 and 7 percent, respectively. Axis Bank has fallen 4.8 percent and ICICI Bank is trading down close to 3 percent. The advance decline ratio on the NSE stands at 1:4.
Also Read: Food Bill passage invite to rating downgrade, says Nirmal Jain
Reacting to the bloodbath, Dilip Bhat of Prabhudhar Lilladher says the fear of losing out is very real and is being aggravated by withdrawal of FIIs. The way HDFC Bank and ICICI Bank have come off shows FIIs are selling in this market. According to him, market in September and October will remain extremely volatile. "5000 on the Nifty is within the striking distance and can happen in September."
We are a part of the Asian rout and the market sentiment is hugely mixed with disappointment over the semi passing of the Food Bill, says Jagdish Malkani, Member BSE & NSE. He foresees more correction ahead.
The Nifty is heading to 5250 that is a given, says Deven Choksey of KR Choksey Securities. If this level breaks 5,250 then further downfall is likely if corrective actions are not taken, he added.
The sharp fall belies the Finance Minister's belief that the Indian market is reacting to an emerging market phenomenon. Siddharth Bhamre of Angel Broking said FIIs are aggressively shorting the index and there is more in the offing.
