red markets

Indian stock markets crashed – Nifty handshaked with the year’s low.

 Biggest culprit for this slide was Banking sector. Infact every sector ended in RED. Apart from Banking, Metals and Real estate stocks bagged the most bad news. Most of the big heads from all the sectors got badly injured.

Some of banks went down by double digits percentages like HDFC bank and ICICI bank. Rumours are that RBI is thinking about another CRR hike. If that happens, it will chop the market further into bottoms unseen in recent pasts.

Recently Barclays report said India’s inflation will see 18% at the end of this year. Fuel price and Fertilizer prices are cited as the major culprits. Barclays think there will be another hike in the fuel price in India. If that happens inflation will surely touch 18%, but if that can be avoided [all chances are that another fuel hike is impossible with elections lingering around] inflation will stand at 15% at the end of the year.

Today Bankex dropped around 462 points, metal stocks lost around 670 points, Power stocks lost 114 points, Oil stocks dropped around 310 points, Realty stocks like DLF lost around 6% and BSE Realty dropped around 260 points, Capital goods category tanked around 565 points, Construction lost 120 points, and Auto sector lost 90 points. BSE PSU, Health, FMCG, and IT sectors lost from 4.5 to 2.4 % respectively.

Hopefully, markets will bounce bank in around 6 months from now.