Indian stock market witnessed a blood bath on 6th may in the opening session itself. The day came with double negative news. One being bloodshed in the market and the other being the leading actor Salman khan sentenced for 5 years by Mumbai session court for the 2003 hit and run case. Within five minutes of opening, the bench mark index NIFTY fell 150 points thus reached at the level of 8150. During the day’s trading it slipped further to 8100 levels and finally it settled at 8097. 2.74% decline in the benchmark index is a big reason to worry for investors and traders. BSE’s index SENSEX too fell 722 points to settle at 26717.
The oil prices are highest this year and it affected oil stocks as well. Among the biggest losers were BHEL which fell 6%. Kotak Mahindra Bank dipped 5.5% at 1345 in Nifty. Bank of Baroda and ICICI bank dipped about 5% to settle at 161 and 312 respectively. On Monday the 4th market soared 150 points and within two days investors witnessed the bloodshed.
One of the leading analyst of market said that the market is going through a correction stage and 7800 -7900 is a very strong support for NIFTY and from there onward an upside is expected. PSU banks and capital goods sector to be remained in news. If we believe his view then earlier this year market soared due to the expectation of good quarterly earnings and stocks had a good run but now when the results are out and more or less they are below the expectations, hence investors are offloading their chunk.
As per another analyst the market is going through a bad phase and if any rally is witnessed it should be taken as a selling opportunity. Axis bank, HDFC Bank, L&T would be the best bet.
The biggest concern for investors is FIIs too are selling on net basis and it would take at least 3-4 sessions of buying by institutional investors to settle the damage. Fundamentally not very big change has happened so value buying is expected at 7900 levels.