It was a horrible month for the Indian bounces so far. The replica of 2008 seems to have returned to attack Indian investors with the stock market showing no signs of bouncing back.
The negative signs coming from within the country such as inflation, rate hike by RBI and the slow down in economic growth and from the global markets such as Europe and US debt crisis, affected Indian equities and Sensex fell 2 percent on Friday to 16, 141.67.
It dipped below the 16K mark on intraday, but returned back at close. Similar pathetic situation at Nifty also.
Nifty was holding the crucial 5000 support level for the past 2 weeks. But it cant maintain that level on Friday because of the huge selling pressure from the FIIs.
When we observe the graph of Sensex and Nifty of the past 4 trading sessions, we can see the selling pressure from FIIs
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The most important negative signal is that FIIs are still on the selling side. In the month of August the pulled out about Rs.8956.6 crore so far.
The selling of FIIs in the last 4 trading sessions is as follows.
Domestic investors bought about Rs.6719 crore in August so far. But they failed to arrest the market slide.
BSE Midcap, BSE 500 indices fallen about 13 percent in the last one month while BSE small cap slumped 17 percent.
Our Finance minister Mr. Pranab Mukharjee said that Indian equities have weathered contagion effect. He added that the present crisis on advanced economics could encourage foreign pension funds and other long-term institutional investors to take higher equity exposures here and India was well positioned to capture this flow.
At the same time $779 billion assets owned, global financial service 'Morgan Stanley' cut it's year-end target for the BSE sensitive index by 15 percent to 18,850 saying that the country's economic growth and corporate earnings will slow.
This situation is really pathetic for day traders. Whatever stop-loss they put, it got triggered.
Regards Hari " लोका समस्ता सुखिनो भवन्तु "
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