Bears Maul Bulls On Day Of Extreme Volatility In Stock Market
Bombay Stock Exchange
Bank Nifty Witnesses Extreme Volatility On Day of Rout In Stock Market
By S Jha
New Delhi, October 7: The Indian equity markets continue to bleed since unveiling of changes in FnO rules. While Asian indices were higher, the Indian bourses went into freefall on Monday.
Sensex lost 638 points. Nifty was poorer by another 220 points. Bank Nifty behaved like a headless chicken on Monday.
Nifty bounced from near-term support around 24700. Bank Nifty was a frog on a boiling utensil.
The banking index first rose by over 300 points. Soon, it went hurtling down to lose almost 1200 points.
But the Banking index went for another swing to recover by almost 1200 points. In last one hour, it tanked again to lose another 1000 points.
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The Bank Nifty index would have been a nightmare to trade for even seasoned traders. Such volatility in the index has rarely been seen.
Japan’s Nikkei, China’s Hang Sang, and Singapore’s Straits Times closely strongly higher on Monday. It’s, thus, the Indian bourses taking knocks in faces.
There has been spike in crude oil prices. The crude oil was trading above $80 per barrel on Monday late evening (IST).
The market participants pin down the stock market crash to the rejig in the rules for the futures and the options (FnO) segment. There are also reports of the high-net-worth individuals shifting financial assets to Singapore.
The small and the mid cap stocks were mauled by bears. Stocks from shipyard and rail segments too severe cuts.
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The IT sector somewhat ducked the trends. Infosys continues to defy bears on the street. Persistent Systems was higher by almost two per cent on Monday.
The PSU stocks have become favourites for bears to prey. The deep correction in the PSU stocks has wiped away almost 50 per cent of valuation from their respective peaks.
The likes of Cochin Shipyard, Rail Vikas Nigam, IRCON, and others are now 50 per cent away from their recent peaks. The PSU index lost 3.41 per cent on Monday.
The auto sector escaped the wrath of the bears with minor cuts. Hero Moto Corps showed signs of strength in the day.
Yet, there were a few scrips who defied the bloodbath on the street. Avantel closed the day with gains of over four per cent.
Housing finance firms such as Aptus Value and Home First were firm with gains. But Bajaj Housing Finance just like recently listed IPOs were mauled by bears ferociously.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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