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Market Report

Monday, 24-Aug-2015

NSE

  • The 30-share Sensex closed 1,624.51 points or -5.94% lower at 25,741.56 while the 50-share Nifty slumped 490.95 points or -5.92% to end at 7,809.00 today. Both the benchmark indices registered their biggest single-day decline in percentage terms since January 7, 2009 when they had dropped 6.2-7.2% each.

  • India's benchmark equities indices witnessed carnage on Black Monday with the markets recording their biggest single-day percentage decline since January 2009. The S&P BSE Sensex plunged over 1600 points in trade today to record its biggest intraday fall since June 2009. The 50-share Nifty index also slipped below its crucial support level of 7900, to record its steepest fall since October 2008. Interestingly, eight out of the top-ten intra-day falls took place in the year 2008.

  • Fearful investors shunned equities, tracking a sharp sell-off in Chinese stocks over concerns that the sluggish growth in that country would lead to a global economic slowdown. The catalyst for the current fall in equity markets across the globe has been China's devaluation of the Yuan which has made the market much more nervous about deflation and competitive devaluation of currencies by countries across the board.

  • The overall investors' wealth, measured in terms of total valuation of all listed stocks, plunged by about Rs 7 lakh crore as it crashed below Rs 100-lakh crore mark and stood at Rs 95,34,540 crore in afternoon trade on the BSE.

  • The Rupee, meanwhile, has hit a day's low of 66.69 against the US dollar, the lowest since September 05, 2013. Globally, China ended 8% down, erasing all 2015 gains. Nikkei ended 895 points down while Hang Seng closed 1,171 points down today.

  • Point to note: foreign investors remained net sellers in equities with huge sale of Rs 2,341 crore on Friday, and another massive sale of 5,275 crore today. See our 'Market Statistics' page.

  • Nifty may hit 7500; not a good time to buy, says Sandeep Wagle. I have not seen such a fall and the magnitude is also amazing. 7723 was the target which I thought would come in the next few days but it came almost today. We are some 40-50 points away. At this level, you cannot sell. 7500-7550 looks likely and in case that does not hold, maybe 7200 is also very likely. One day's action cannot determine that. But from what I have seen today, 7500 looks very likely. Do not be in a hurry to buy. As a trader wait for any meaningful bounce back - maybe 70, 80 points - to sell. I cannot say whether a bounce back will come but to assume that a bounce back will not come that may also not be right, he adds.

  • We are in a cyclical bear market, says Ashwani Gujral. What is important for me is we opened gap down by 250 points on the Nifty and we closed at the lows of the day. Anybody who came in, first sold with a gap down and then kept on selling throughout the day. This kind of a massive bar has not been seen in the last two or three years. This is significant and I believe that today you can safely say that the existing bull market is done. For the moment we are in a cyclical bear market which could take us down to 6800-7000. Only then the next leg of the bull market may start. Chances are, over the next 15 days, the market and stocks should be lower from here. If Dow Futures are down another 400 points today then things will get worse, he warns.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)