Recovery looked far-fetched from there as it slid further and plumbed the depths at 500 points intra-day before closing 453 points down.
MUMBAI: The deafening noise heard around mid-morning on Wednesday came from the stock markets. The sound of the opening bell literally sank the Bombay Stock Exchange Sensex by 300 points. Recovery looked far-fetched from there as it slid further and plumbed the depths at 500 points intra-day before closing 453 points down.
If you want a villain, the Dow could well be it. The Dow fell 242 points on Tuesday, and all Asian markets started crumbling like a pack of cards on Wednesday. India’s Sensex had the sharpest fall at 3.49%, second only to Vietnam.
“The speed with which a fund manager can move money from one market and deploy it in another, depending on what he thinks looks good for the day, has changed market dynamics,” says Ajit Dayal, chief investment officer of Quantum Mutual Fund.
The Dow opened a point down on Wednesday as well, and had slipped more than 50 points by 9.30 pm IST. A weak close for the index may be all it takes to get the bears celebrating again. But then, don’t count on it. Just when you thought the bulls were out for the count, the Sensex does a jack-in-the-box.
These are erratic days and volatility is rising both ways. Therefore, it’s anybody’s guess as to where the markets will be headed on Thursday.
“The retail segment is likely to remain perched on the fence of scepticism. Avoid big ticket trades and conserve capital,” is chartist Vijay Bhambwani’s advice.
Here are some other views from experts. “I see the markets consolidating between 12,000 and 13,000 for some time, at least till the results season kicks in,” says Janish Shah, head of research at Networth Stock Broking.
Upendra Sheth of Ideas First, another research and broking outfit, sees the Sensex’s support at 12,343 and the Nifty’s at 3,569. On Wednesday, the Sensex closed less than 200 points above that support at 12,529.62 points.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}