Sensex tumbles by 934 pts.
Sensex falls by 10% in last 4 days.
These are the kind of headlines all of us are seeing for past 4-5 weeks.
Not just Indian stock Markets but Global Markets are falling.
When we started Moolyankan 6 months back, Sensex was at 15593 and yesterday it closed at 15924. Just a casual look would tell us most of the stocks are below their Jan lows.
Suddenly all the positive triggers have dried up and everyday we hear some bad news regarding US economy, Indian companies.
Larsen and Toubro recently announced that they would incur Rs 150-200 crore hedging loss.
If we look at just 2-3 quarters back than most of the companies were reporting significant increase in other income due to forex gains.
Where will all this stop ?
We don't know whether the makets will stabilize at 12000 or 14000, but it is obvious that there is further downside from here. The way Indian markets fell 10% in last 4 days was worrying sign. Stocks are falling 5-10% on very low volumes and this is dangerous since it indicates no body is buying. There is total apathy of buyers in the markets. Some of the stocks might have come at mouth watering levels fundamentally and it might seem they will stop falling at those levels, but stocks rarely trade at their fair value. When we went up there were excesses and now on the downside way we again have excesses.
How long all this will continue ?
Again difficult to say, because our bear market is just 4-6 weeks old and if all the indications coming from US economy, Global markets are factored than we are in for a longer bear market.
Sensex falls by 10% in last 4 days.
These are the kind of headlines all of us are seeing for past 4-5 weeks.
Not just Indian stock Markets but Global Markets are falling.
When we started Moolyankan 6 months back, Sensex was at 15593 and yesterday it closed at 15924. Just a casual look would tell us most of the stocks are below their Jan lows.
Suddenly all the positive triggers have dried up and everyday we hear some bad news regarding US economy, Indian companies.
Larsen and Toubro recently announced that they would incur Rs 150-200 crore hedging loss.
If we look at just 2-3 quarters back than most of the companies were reporting significant increase in other income due to forex gains.
Where will all this stop ?
We don't know whether the makets will stabilize at 12000 or 14000, but it is obvious that there is further downside from here. The way Indian markets fell 10% in last 4 days was worrying sign. Stocks are falling 5-10% on very low volumes and this is dangerous since it indicates no body is buying. There is total apathy of buyers in the markets. Some of the stocks might have come at mouth watering levels fundamentally and it might seem they will stop falling at those levels, but stocks rarely trade at their fair value. When we went up there were excesses and now on the downside way we again have excesses.
How long all this will continue ?
Again difficult to say, because our bear market is just 4-6 weeks old and if all the indications coming from US economy, Global markets are factored than we are in for a longer bear market.
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