Bloodshed in the markets as SBI crashes

As mentioned in our morning update the markets opened sideways and were trading in a narrow range for major part of the early morning trades.

Post noon the markets have plunged southwards and there is bloodshed on the street as Moody’s cut SBI’s standalone rating to D+ from C- sending the stock down by more than 5 per cent.

If this wasn’t enough a weak opening witnessed in the European markets has also been adding to the selling pressure here. Asian shares have also been trading heavily in the red.

The European opened in the red as amidst fresh concerns over sovereign debt crisis in Europe and fears of a global slowdown.

Back home, among the SENSEX all stocks barring Maruti Suzuki and L&T are trading in the red. Auto major Tata Motors leads the pack as its 5.3 per cent down at 145.85. SBI comes next at 5.25 per cent. Metals major JSW Steel seems to have no respite and is again down by 5 per cent to Rs 450.75. all othe major stock are also trading heavily in the red.

Meanwhile, the shares of fertilizers companies such as Chambal Fertilizers, National Fertilizers, Rashtriya Chemicals and Fertilizers and Coromandel International are trading higher by more than 2-5 per cent each on hopes of decontrol in urea prices.

The market breadth, indicating the overall health of the market, is negative. On BSE, 1736 shares fell and 804 shares rose. A total of 105 shares remained unchanged.

In conclusion, we expect the market to remain negative for the remainder of the day and advise investors to stay cautious.

Previous Updates

8:30 am: Another day of volatility expected for the markets