Bloodbath on Dalal Street: Sensex crashes to 13, 200 levels

15 September 2008

Markets are extremely under pressure and that weakness got strenghtened further after sharp sell off in European markets in early trade. Realty, technology, power, telecom, metal, capital goods, banking and oil stocks slumped severely. Midcap and small cap stocks are also in the same league.

Heavyweights like Reliance Industries, ONGC, NTPC, DLF, Infosys, Reliance Communication, TCS, BHEL, SBI and ICICI Bank plunged 4.5-8.5%. All BSE Indices are in the red. Not a single stock in the benchmark indices is in green.

The Sensex fell 729 points to 13,271 and the Nifty lost 232 points to 3,995, which is hovering around 4000 mark. BSE Midcap and Small cap indices went down over 5.5% each.

Incremental flows at FII desk are negative. There is a complete lack of buying and local institutions are on sidelines. Nifty 4000 is a key level and if it closes below that mark then it will add more pressure.

There is a buzz of liquidation of Lehman proprietary book & P-Notes transfer. Investors worried about larger impact on global markets. Bigger worry is AIG going bust while Merrill news is surprising. AIG has huge exposure to all emerging markets.

KC Reddy of ABN Amro AMC sees a global economic slowdown and an industrial slowdown. He expects the FII (Foreign Institutional Investor) flows to continue to be negative till November.