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Market Report

Thursday, 11-Feb-2016

NSE

  • The S&P BSE Sensex tanked 807.07 points, which is a massive -3.40 per cent, during the day to end at 22,951.83 today breaking the crucial 23,000-mark. The 50-share barometer Nifty50 broke below 7,000 level and closed at 6,976.35 today, down 239.35 points or -3.23 per cent. The market touched the lows of the pre-Modi era and fell even more as both Sensex and Nifty50 closed at new 52-week lows, indicating broadbased fear on Dalal Street.

  • It was black Thursday on Dalal Street today, as a global selloff saw the benchmark indices break multiple support levels to post the biggest intraday loss since August 24, 2015. The selloff that began in Hong Kong spread to the European markets, as shares of banks and mining companies collapsed. The meltdown was triggered by the widespread selling seen on the banking counter all over the world, as investors turned wary about the health of the global financial system.

  • There was widespread fear in the market. The broader market also participated in the selloff with the BSE midcap and BSE smallcap indices shedding -3.27 and -4.64 per cent, respectively. Most other Asian markets traded weak, following US Fed Chair Janet Yellen's testimony, which suggested that the Fed is likely to continue with gradual rate hikes. Hong Kong's Hang Seng index closed 4 per cent lower. European markets suffered sharp losses in opening trade.

  • This was the 11th biggest points-wise (807 points) single-day fall for the Sensex in its history, but nothing compared to the 1625-point crash seen in the Sensex on August 24, 2015. The Sensex has come off more than -23 per cent from its all-time peak of over 30,000, scaled nearly a year ago on March 4, 2015. In today's session itself, the total investor wealth slumped by over Rs 3 lakh crore - taking the total loss since start of the week to nearly Rs 7 lakh crore.

  • The market fell steeply on the back of continuing concerns about a global slowdown and the consequent impact on the financial sector, said Dipen Shah of Kotak Securities. The US Fed also did not provide further clarity on future interest rate movement. Quarterly results declared over the past few days have also not met muted Street expectations and that has impacted investor sentiments, said Shah. Going ahead, global concerns will remain at the centrestage and will likely dictate market sentiments. On the domestic front, we need to closely watch the budget where the FM has a difficult task of supporting growth while maintaining fiscal prudence, he added.

NIFTY 3-Month

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