Market Study

Déjà vu! Just like the last weekend, the markets have ended in deep red. The bears successfully crushed the bulls. July will see the markets in a negative bias and the culprit happens to be, none other than the famous fall in the US markets which lead to fear in the price rise of crude prices and bad returns from the IT sectors. The Dow Jones fell nearly 350 points on Thursday to close at its lowest point ever since September 2006.

The Sensex had its lowest point of the day at 13,760.24 slipping nearly 661.58 points over the previous close and it ironically ended at 13,802.22 down by nearly 619.60 points or -4.30%. Nifty too, ended southwards closing at 4136.65 down by 179.20 points or 4.15%. Its low point for the day was 4119.20 down by 196.65 points.

Bank, Auto, Realty and Infrastructures sectors which are related to rate hikes had their major blow due to heavy selling. The mammoth blow for today's downfall of markets was the Crude-Oil reaching a new high of $141.7 a barrel; an all time high. But experts say that they expect the crude to touch $170 a barrel.

The Bank sector noticed the worst hit, falling 345.64 points or 5.34% at 6,125.95.
Heavy sell off was seen particularly in Bank of India, Axis Bank, ICICI Bank, Kotak Mahindra, Yes Bank, SBI, PNB and HDFC Bank. The Automobile stocks too plunged badly today falling 204.83 points or 5.26% at 3,689.92. Tata Motors, M&M, Bajaj Auto,
Exide Industries, Ashok Leyland, Maruti Suzuki and Hero Honda lost the road and got onto the wrong track!

Other indices that were badly hurt in today's crash are:

Power index down by 119.5 points or 4.87% closing at2,335.26.

Metal index slid by 630.96 points or 4.53% at 13,292.45 due to selling in NALCO, Sterlite Ind, SAIL, JSW Steel, Hindalco, Tata Steel and Jindal Steel.

Technology index down by 177.11 points or 4.24% at 4,004.75.

Capital goods lost 445.09 points or 4.09% closing at 10,442.14.

The telecom sectors saw heavy pressure for selling today.

But finally, the Health sector came to the stock rescue as they recovered but they were caught by the downfall trend and fell 1.4% at 4,150.05.


MIDCAP &SMALLCAP INDICES:

So all you investors must be expecting real Hariyali season! But unfortunately for all of you it’s a REDDISH market today. Midcap Index slid 183.29 points or 3.19% at 5,558.75. Amongst midcap stocks Hind Const, Phoenix Mills, IRB Infra, Atlas Copco, Sintex India, Triveni Engg, Panacea Biotech, TV 18, Asian Hotels, Nagarjuna Fert, BN18 Broadcast and Deccan Aviation fell around 8-14%.

Smallcap indices fell by 191.01points or 2.68% at 6,938.07. So, the markets will continue to trade low in the next week in the start of July and we sincerely hope the markets will recover soon. After all everything lies in hope and luck!