Its one of those days that any investor would like to forget in a hurry.Well everyone has a reason good enough for it.The inauspicious Black Monday was back on the streets,when the markets saw its worst ever fall in a intra day in the history.The 30 share sensex was down by 1408 points to settle at 17605 levels and nifty lost over 496 points to close at 5208 levels.It was a sort of blood bath in the markets.

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The collective market capitalization or the investors wealth was also down by a whooping 6.6 lakh crore.All the sectors performed  badly with metals losing 13%, reality losing 12.8%,oil and gas sector down by 11%.All most no one was prepared for such a drastic fall in the markets and even many analyst  were also didn’t expect such a fall coming in the markets.

During one point of time the sensex went below the 17000 mark and the nifty below 5000  mark.So the markets were shut down for a while before trading resumed and it recovered almost 700 points from the day’s low.

This fall reminds us of May 18th 2006 when the markets lost around 826 points.Coming to the reasons of the fall now.Well there are many reasons which are being attributed for this.The main reason being the performance of global markets and especially that of US. Heavy selling was seen across the markets in US and the Asian ones.

The news of US recession becoming strong also had the worst impact on the stock markets.Hedge funds and FIIs have been the biggest sellers in the markets.FIIs have pulled out 5300 crores from the markets in the last 6 trading sessions,when the markets lost around 3,222 points. It is also being said that some big IPO coming in are sucking out the money from the markets.

Some analyst are in the belief that the markets may even correct another 10-15% points from here on.Well the investors need to have patience in the current situation and also look at the markets from buying point of view.As almost all the stocks are now looking attractive.New investors are advised to remain away from the markets for a while till it settles down and  a upward move starts.

Key Asian markets like Japan’s Nikkei,Hang Seng and Singapore’s Straits Times lost heavily in the range of 4-5 % points.And the worst was that of Indian markets.Some of the biggest losers in the markets included Essar Oil,Nagarjuna fertilizers,WWIL,Oswal chemicals,Jindal steel,Bajaj Hindustan,PRPL,Ispat,Sasken Industries,IVR prime with each losing around 30% points.

The trading strategy to adopt now is to remian very cautious of every move in the markets.In general the market fundamentals have not changed at all.It is just that the valuations are now attractive unlike in previous times when it was over valued.Its time to just stick to your own port folio and not try and find some other perforing stocks.

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