Stock Market: 3PM horror show revisits bourses
By S Jha
New Delhi, March 27: India’s ‘Mota Bhai’ is widely known to have several abilities, including of launching on a solo run to lift the industry sentiment and even change the direction of the economy. He is solely credited to have heralded the data revolution in the country by launching an ultra-cheap data services.
Reliance Industries launched on a solo run on Monday after the indices slipped into the red after having marginally been on the greener side in the morning. The index heavyweight seemed determined to give a new direction to the bourses. By noon, Reliance Industries was playing joyfully in the midst of rampaging bulls. The scare of the financial market stress in Europe and imploding banking space in the US were almost pushed into the shadow.
But the bulls ran helter-skelter after the market revealed the 3 PM show. Traders who seek to forget that it’s novices who open the market and it’s the experts who close the markets were in for a rude shock. The indices tanked from 3 PM onwards. Nifty lost almost 90 points in a few minutes. Nifty had peaked at 17073 in the afternoon, but closed at 16985, again staying below the psychological level of 17000.
Bank Nifty was wrecked more by the 3 PM show, losing over 350 points. All constituents of the Adani Group on Monday ended in the red, handing over a collective market valuation loss of Rs 31,000 crores. It had been a stellar run for Adani Group, which nearly doubled in a short span of time to finally close in the red on Monday.
The basket of negative cues consisted of Parliament passing the Finance Bill, which had proposed treating the debt mutual fund to be taxed for short term capital gains and Russia indulging in nuclear blackmail amid reports of the NATO nations gearing up to scale up their military support to Ukraine.
The institutional action in the equity market was positive, solely because of the firm commitment of the domestic institutional investors (DIIs), who pumped in over Rs 1800 crores in the cash market to negate the selling by the foreign institutional investors. The market breath remains under stress, as the midcaps and smallcaps are being mercilessly hammered. This is aligned to the broad view that the midcaps and smallcaps pay heavy price when bears rule the markets.
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