The panic selling and the current downfall in the markets continued in its 7th consecutive day today.The markets opened with huge gap down and withing seconds hit the 10% lower circuit and the markets were shut down for an hour.This was fourth such incident in the history of the markets.

The first one being in Harshad Mehta case,then in may 2004 during the fall of NDA government,then the last one in Oct 2007 during the P-notes issue,At one point of time the sensex touched 15,888 points.Finally Finance Minister Mr.Chidambaram came out to give an assurance to the investors that the Indian story is intact,the Indian economy is expected to grow at 8.5% in the coming year.He said that “The crash does not impact long-term sentiments”.But it seems the words coming from the Finance Minister had any impact on the bourses.The markets ended the day in deep red losing over 875 points or 5.23% to settle at 16729 points and the Nifty at 4899 lost 310 points or 6.32% in the day.

But the best part was the way the markets made a come back and recovered almost 1600 points from the days low.The Asian markets were also drastically low with Hang Seng losing over 2000 points in todays trade.The European markets had a mixed reaction with  FTSE 100 closing up but DAX was down today.Mean while in todays trade the US markets have also lost heavily with Dow & Nasdaq losing 1.06% and 2.04 % respectively even after the Fed announced the rate cut.

Now coming to the Fed Rate cut issue.This was something which was bound to happen but it was a emergency call today when the Federal Reserve Bank announced the rate cut by 75 basis points. The last this happened on Dec 12th.But this had no impact on the US markets.Well some analyst are now thinking that the worst is almost over.And the markets look attractive now.But nothing can be said as such as the US markets were still choppy today inspite of Fed rate cut.And its effect is going to be there on the Indian markets on Wednesday.

Some of the key losers included Jaiprakash Hydro,Ispat,Chennia petro,Triveni Engg,Sterlite techno,CESC which lost in the range of 25-30% points.Investors are asked better not trade in small caps in the present times.The only option now left is value investing.Many scripts like Infosys,TCS, RIL,L&T,SAIL,DRL etc look attractive in the current proposition.

So still some mixed reactions coming in from different areas like some expect markets to rally soon and some still expecting another 5-10% fall.The time to come will only reveal

whats in store for all the investors.

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