Bloodbath On D-Street

Indian Markets plunged after a series of developments which created negative sentiment in the minds of investors. A roll back of rail fare hikes and slowdown in Chinese economy weighed heavily on market sentiments. Further speculation that interest rate may not be reversed in the next policy meet dampened the sentiments of Investors. All the sectors closed in the deep red with the Interest rate sensitive Indices like Realty and Bankex losing the most. Other Indices Power, Capital goods, Metals etc also plunged more than 3 per cent.

On the other hand, Asian Markets closed on a mixed note with Shanghai marginally in the red zone. Hang seng and Nikkei closed in the green. European markets are currently trading on a weak note with DAX and CAC trading lower more than 1.50 per cent while FTSE is down almost a per cent. 

The Dow Jones Futures is currently trading 61 points or 0.47 per cent down at 13005 indicating a negative sentiment in the US markets.

Back home, Jindal steel is the leading Index loser down 7.26 per cent to Rs 546.55. Other stocks like DLF, Tata Steel, Tata Power and RIL closed down more than 4 per cent. Banking space which includes ICICI bank, HDFC bank and SBI closed down in the range of 2.48 to 3.84 per cent.  Other Auto stocks like Mahindra and Mahindra, Maruti Suzuki, Tata Motors closed down more than 2 per cent. Other stocks like ONGC, TCS, Sun Pharma, HDFC closed down less than a per cent. On the other hand only two Indices stocks closed in the positive territory. Coal India and Hero Motocorp closed the day higher 2.40 and 0.48 per cent respectively. 

Yesterday post market RBI tightened the norms on Gold companies; the effect of this is seen in gold companies stock which plunged in the morning trade. Muthoot Finance and Manappuram finance are trading down 10 and 18.50 per cent respectively.  

The market breadth, indicating the overall health of the market, was negative. Out of 3333 stocks traded, 2326 declined while 902 stocks advanced. A total of 105 stocks remained unchanged.

In conclusion, we expect the markets to remain volatile as Investors are very jittery to invest in such markets which fail to provide and concrete direction.