Investors choke as market breaks all major supports
27 Oct, 2008
MUMBAI: The market seemed to lose bottom on Monday as the Sensex sank below the 8,000 market and Nifty breached the 2,300 level. The market was expected to drop given the heavy losses in the US Friday and weak start to trade in Asia, but the severity of the fall has taken everyone’s breath away.
The current turmoil has resulted in 17 stocks amongst the BSE 100 Index to trade a book value of less than one on valuation matrix price.
Stocks that fall into this category include sectors like PSU oil marketing companies like HPCL, IOC and BPCL, and metal stocks like Tata Steel, Hindalco and JSW Steel.
In addition, investor concerns for the real estate and construction sector, has resulted in scrips like DLF and IVRCL Infrastructure & Projects also being included in this list.
Said Bharat Shah, Head-Institutional Business, Ventura Securities, “Markets are behaving very abnormally. We were expecting the markets to settle down at least today, especially after the severe beatings that we witnessed last week. But the bad news in the form of FIIs selling still persists. The valuations at which markets have reached may seem tempting, but no one knows the correction on the time front. We are advising our clients to do some value picking for longer terms but restraining them from selling at these levels. Sentiments have taken a beating and the markets are nowhere reflecting the fundamentals.”
Spark Advisory CEO, Ankit Sinha, said, “Indian markets have fallen in line with the global markets. Key benchmarks have broken all the major supports. FII are continuously selling and raising cash levels. Supply is coming at every level, overlooking the valuations. This can be said as the mother of all bear markets.”
“These panic levels are quite unseen; it's difficult to have any words for this situation. In panic, all rationale goes out of the window. There is no meaning to predict levels. After FIIs, long-only funds are also selling, which is a major concern for the markets,” said Arun Kumar, analyst at Global One Hedge Fund.
Jayshree Gupta, head, Flexion Capital Management, said, “What we need to do is, either improve the constituent ratio--that is raise the domestic holding, or in these kind of situations, government organizations like LIC or PSU banks should come forward to rescue the markets.”
Source : Economic Times
27 Oct, 2008
MUMBAI: The market seemed to lose bottom on Monday as the Sensex sank below the 8,000 market and Nifty breached the 2,300 level. The market was expected to drop given the heavy losses in the US Friday and weak start to trade in Asia, but the severity of the fall has taken everyone’s breath away.
The current turmoil has resulted in 17 stocks amongst the BSE 100 Index to trade a book value of less than one on valuation matrix price.
Stocks that fall into this category include sectors like PSU oil marketing companies like HPCL, IOC and BPCL, and metal stocks like Tata Steel, Hindalco and JSW Steel.
In addition, investor concerns for the real estate and construction sector, has resulted in scrips like DLF and IVRCL Infrastructure & Projects also being included in this list.
Said Bharat Shah, Head-Institutional Business, Ventura Securities, “Markets are behaving very abnormally. We were expecting the markets to settle down at least today, especially after the severe beatings that we witnessed last week. But the bad news in the form of FIIs selling still persists. The valuations at which markets have reached may seem tempting, but no one knows the correction on the time front. We are advising our clients to do some value picking for longer terms but restraining them from selling at these levels. Sentiments have taken a beating and the markets are nowhere reflecting the fundamentals.”
Spark Advisory CEO, Ankit Sinha, said, “Indian markets have fallen in line with the global markets. Key benchmarks have broken all the major supports. FII are continuously selling and raising cash levels. Supply is coming at every level, overlooking the valuations. This can be said as the mother of all bear markets.”
“These panic levels are quite unseen; it's difficult to have any words for this situation. In panic, all rationale goes out of the window. There is no meaning to predict levels. After FIIs, long-only funds are also selling, which is a major concern for the markets,” said Arun Kumar, analyst at Global One Hedge Fund.
Jayshree Gupta, head, Flexion Capital Management, said, “What we need to do is, either improve the constituent ratio--that is raise the domestic holding, or in these kind of situations, government organizations like LIC or PSU banks should come forward to rescue the markets.”
Source : Economic Times