Fall of largecaps brought Index under extreme pressure : Udayan Mukherjee

Bad news today. I am afraid after yesterday’s move up in the market, today there was hope but it just collapsed; 700 points down on the Sensex, 200 points down on the Nifty. These are very sharp cuts which have opened up 6-7% cuts on the index that’s really bad going. It did not look like that early in the day because Asia seems to be dealing with that last minute reversal in the US quite well, most markets were very flat in the morning but as the day progressed Asia started coming off and India started coming off quite a bit. So from the middle of the day onwards it was just one way and that was down. Europe opened up quite weak while we were trading, the Dow futures was also pointing downwards and all of those global cues went into that 700 point cut that we finally came away with.

All the stocks which helped the market up yesterday whether its capital goods and infrastructure they were down led by the BHELs and ABBs of the world whether its real estate led by DLF and Unitech and the metal space which was the big mover yesterday on the way up but all those gains got wiped out today whether its Hindalco, Tata Steel, Sterlite or SAIL they all got pounded 10%-12%.

What is worse were all the largecap pillars of the index like Reliance Industries, ONGC, ICICI Bank and Bharti Airtel, they collapsed between 7%-10% and that brought the index under extreme pressure.

In the internal, the volumes were higher today by about 10,000 crore. That’s disturbing that on the day up the volumes were lower, on the day down the volumes have picked up.

Source: Moneycontrol