Post Market Report, February 11, 2016 | Stocks and Commodities

February 11, 2016
Time: 8.30 am

Post Market Report:

1. Last year, on August 24, markets went for free fall, BSE Sensex fell by 1600 points.
2. China devalued its currency that time and that was the trigger.
3. Today, it was something like that, Sensex went for a free fall and lost more than 800 points.
4. From Monday 2 pm to today 3.30 pm, Nifty has lost nearly 550 points.
5. This time, no specific trigger, fall in Crude oil prices, fall in European Banking shares, poor results from PSU banks, all contributed to the fall.
6. FIIs keep selling in Cash market everyday and today they have sold for Rs 1113 crores, largest so far this year.
7. But DIIs have bought for Rs 1222 crores which is about Rs 110 crores more than what FIIs have sold.
8. Yet markets can go for such a free fall, so see the power of F&O traders.
9. In fact SBI results were not that bad and SBI did not fall much.
10. More than half of the fall was due to 6 stocks, HDFC, HDFC Bank, ICICI Bank, Reliance and Infosys. TCS, Tata Motors and Kotak Bank contributed about 30 points to the Nifty fall.
11. So clearly, people are selling the shares wherever they have profit, that is why HDFC and HDFC Bank are falling.
12. These two companies have no problem of any sort. Not only today, yesterday also these two stocks were the major contributors for the fall.
13. Panic was not only felt here, it was felt in Singapore also.
14. Our markets close here at 3.30 pm Indian time, Singapore markets closes at 3.40 pm Indian time, that means it trades for 10 minutes more.
15. At 3.40 pm, SGX Nifty closed at 6918 while it Nifty future closed at 6980 here. So Nifty lost 62 points in 10 minutes in Singapore.
16. But now it is trading around 6980, may be after seeing that DII buying matched FII selling.
17. With such a bear run is going on, markets may not see any meaningful recovery as every short covering rally will be sold into.
18. As I mentioned earlier, the volatility will continue for next two days, markets may stabilise only from Tuesday.