The bears are rocking across all the bourses crushing the hopes and aspirations of bullish investors and as I am writing this, the Dow is trading at 9891.54, down by 246.98 points. The net loss sustained by the Dow since last five days from 23 June 2010 till date is to the tune of 380.40 points and if this trend continues, I shall not be surprised if the Dow slides to 9000 within a fortnight. The Nikkei 225 was down by 123.27/-1.27 per cent, Hang Seng was down by 477.78/-2.31 per cent, FTSE 100 was down by 157.46/-3.10 per cent and the DAX shed 205.19/-3.33 per cent.
Shanghai Composite Index dived 4.3 percent to a 14-month low of 2,427.05 as investors fretted that Agricultural Bank of China's record-breaking initial public offering will draw money away from other stocks and depress prices overall.
The Sensex closed at 17534.09, down by 240.70 points and the Nifty rested at 5256.15, down by 77.35 points. The top three gainers were IDFC, L&T , and Bharti Airtel which gained 1.23 per cent, 0.22 per cent and 0.15 per cent respectively. The top three losers were Hindalco, RCom, and Tata Steel which shed 4.28 per cent, 4.14 per cent and 3.70 per cent respectively. The market breadth as reflected by Nifty advances and declines was pretty negative and stood at 4 : 46 [ compared to yesterday’s positive Nifty advance-decline of 44:6 ] If the bears continue to pop up and stay like uninvited guests for the next couple of days, then expect the Sensex to slide below the 17000 mark.
So, why on earth are the markets moving into red territory? Peter of Aalon Partners has a perfect answer for this : Worries that European banks won't be able to pay back the European Central Bank this Thursday as part of its €442 billion lending program are likely to drag the market even lower, said Peter Cardillo, Cchief Market Economist at Avalon Partners, New York. Markets are also jittery about the U.S. employment report due on coming Friday
In corporate news MMTC [ Face Value Rs.10 ] touched an intraday high of Rs 33,501 and an intraday low of Rs 32,502. At 14:41 hrs the share was quoting at Rs 32,799, up Rs 262.45, or 0.81%. The company has okayed 1:1 bonus and 10:1 stock split, reports CNBC-TV18
Triton Valves declared a Bonus Issue of 2:1.and the share goes ex-bonus on 5 July 2010.
Amongst sectors, Bankex shed 159.46 points while Oil and Gas was down by 146.18 while BSE Metals shed 411.57. .
So, if you are planning to enter the markets any time soon, just watch the game like the World Cup Referee without blowing the whistle and strike a goal [ read buy ] if the market crashes further.
Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd
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