Post Market Report, February 29, 2016 | Stocks and Commodities

February 29, 2016
Time: 9 pm

Post Market Report:

1. One of the worst roller coaster ride in the last many years.
2. Nifty fell nearly 300 points and then recovered about 300 points and then fell nearly 100 points.
3. There was an intraday swing of nearly 1000 points in Nifty.
4. Since morning Bank Nifty had been out performing.
5. Auto stocks fell due to new taxes.
6. ITC fell due to new taxes but recovered later.
7. IT stocks fell the most, no special reason for that.
8. ONGC fell more than 10% due to 20% tax on crude oil.
9. Bond yield started falling and the market interpreted it as a sign for lower interest rate by RBI triggered short covering and Bank Nifty shot up by more than 800 points intraday.
10. We should not be surprised if RBI cuts interest rates before next policy meet. RBI has done like this last time.
11. But as I have mentioned earlier, the real problem was not the budget.
12. The real problem is the FII selling.
13. Even today at such low levels, FIIs have sold for more than Rs 2000 crores, at Rs 2018.02 crores.
14. This is the highest amount of selling in 2016 by FIIs.
15. DIIs have bought for Rs 1445.25 crores.
16. Our market weakness will continue until FII selling subsides.
17. India has accounted for 50% of the FII selling in all emerging economies in 2016.
18. Emerging economies valuations are close to 1998 levels now, yet there seems to be no bottom.
19. From tomorrow onwards global cues will take the centre stage.
20. Today, China's central bank cut the Reserve Ratio for banks and that is having some positive effect in Europe and US markets.
21. One good thing is that India VIX fell by about 8%.
22. Only Banking and Metal sectors look bullish now.