11/02/2016 BloodbathonDStreet:FivereasonswhySensexslumpedbyover800pointsTheEconomicTimes

http://economictimes.indiatimes.com/markets/stocks/news/bloodbathondstreetfivereasonswhysensexslumpedbyover800points/articleshow/509 1/2

Youarehere: ETHome Markets Stocks News

ByECONOMICTIMES.COM|11Feb,2016,03.12PMIST PostaComment

Editor'sPick

SBInetprofitdown61%inQ3,grossNPAcross5%

Gold@18monthhigh,surgestoRs28,800/10gms

807pointswipedoffSensex,Niftyslumpsbelow7K

Indiagrowthrobustamidglobalmarketturmoil:Das

HDFCBankmorevaluablethanDeutscheBank

ETSPECIAL: Lovevisualaspectofnews?Enjoythisexclusiveslideshowstreat!

BloodbathonDStreet:FivereasonswhySensexslumpedbyover800points

NEWDELHI:TheS&PBSESensexplungedover800pointsinafternoontradeonThursdaytohititsfresh52weeklowof23,057.36,ledbylossesinrealty,power,bank,capitalgoods,consumerdurable,andmetalstocks.

TheNifty50cameunderpressureinthelast11/2houroftrade,fallingover200pointstoregisteritsfresh52weeklowof7,003.75atthetimeoffilingofthereport.

(Forminutebyminutemarket/stockupdates,followourTwitterhandle@ETMarkets)

IfoneweretogobythebuzzonDalalStreet,hereiswhythemarkethascrashed.

Bearhugtechnicalfactors:Thebenchmarkindicesaretradingwellbelowtheirsupportlevels.But,analystseefurtherdeclineinmarketswhichcouldtakeNifty50towards6,7006,800levels.TheNifty50appearstobeinthelastlegofsecondcorrectivestructurewhichisinprogresssinceAugust2015,sayexperts.

InvestorscanlookatgoinglongifNifty50fallstowards67006800levels,becausethatiswhereaneartermbottomisplaced.

"Basedonconventionaltechnicalanalysis,onlongtermcharts,strongsupportsareplacedaround6700levelswhereweexpectmarketstobottomout.Longtermstructurebasedonwavecountsisstillbullishlypoisedandhencewearecomfortableincreatinglongpositionsaround6700levels,"saidMazharMohammad,ChiefStrategistTechnicalResearch&TradingAdvisory,Chartviewindia.in

"Rightnow,forNiftythislookslikeaworstcasescenariowheremarketsshouldbottomout.However,onmediumtermchartsreasonablesupportlevelsareplacedinthezoneof70976875,"headded.

USFedcommentary:ThecommentaryfromUSFederalReserveJanetYellenissomethingwhichmighthavecaughtinvestorsbysurprise.Mostexpertswerepencillinginaratehikeby2017amidslowdowninglobalgrowth,glutincrude,andChinajitters.

FederalReserveChairJanetYellentestifiedbeforetheHouseFinancialServicesCommitteeWednesday.ShesaidthattheFederalReserveisunlikelytoreverseitsplantoraiseinterestratesfurtherthisyear.

However,shehighlightedinherstatementthatvolatilefinancialmarketsacrosstheglobe,tighterliquidityanduncertaintyoverChineseeconomicgrowthhaveraisedriskstotheU.S.economy.

"ThiswasacredibleretracementinourviewandIthinkthatthetwopointsweshouldkeepinmindwasthatJanetYellenquiteexpressivelysaidthattheturmoilinthefinancialmarketsaswellaswhatisgoingoninChinadoesthreatenthegrowthoutlookfortheUS,"saidSanjayMathur,SeniorEconomist,RBS.

"Thesecondpointshesaidwasthatfearsofeconomicslowdownarenotfeedingintoassetpricesandtosomeextentsheistryingtopointtothefactthatnegativewealthaffectscouldhaveabearingontheeconomy,"headded.

"Netnetwhenwelookatit,itisgettinghardandharderfortheFedtojointhefourdotsthattheyhadsortofpredictedinDecemberandyoucanseethatinthemarketaswell,"saidMathur.

Fallincrudeoilprices:CrudeoilpriceshavebeeninadownwardspiralsinceJulyof2014.ThebenchmarkBrentcrudepricesinLondonhavecrashedfrom$106inJuly,2014to$30today,adropofover70percent.

RELATEDVIDEO

Niftyfallsbelow7,000Sensexbreaks23,000mark

SearchforNews,StockQuotes&NAV's

11/02/2016 BloodbathonDStreet:FivereasonswhySensexslumpedbyover800pointsTheEconomicTimes

http://economictimes.indiatimes.com/markets/stocks/news/bloodbathondstreetfivereasonswhysensexslumpedbyover800points/articleshow/509 2/2

OtherTimesGroupnewssites

TimesofIndia | | MumbaiMirrorTimesNow | Indiatimes | | LifehackerGizmodo | Eisamay | IGNIndiaNavGujaratSamay

LivingandentertainmentTimescity | iDiva | BollywoodZoom | LuxpressoOnlineSongs | TravelGuides | HotelReviews | Cricbuzz.com | PrepaidMobileRecharge

Networkingitimes | MensXP.com

HotontheWebDailyHoroscope | WeatherinDelhiMumbaiMap | Horoscope2016HotelsinDelhi | XiaomiMobilePhones

ServicesBookprintads | OnlineshoppingMatrimonial | Astrology | Jobs | Property | Buycar | BikesinIndiaUsedCars | OnlineDeals | RestaurantsinDelhi | MovieShowTimingsinMumbaiRemittoIndia | BuyMobiles | ListenSongs | VoiceGreetings | TechnologyNews | AugmentedReality | MobileRecharge | CompareMobilePhones

Aboutus / Advertisewithus / TermsofUse&GrievanceRedressal / PrivacyPolicy / Feedback / Sitemap / CodeofEthics / Disclaimer Copyright2016Bennett,Coleman&Co.Ltd.Allrightsreserved.

LiveMarket News Portfolio Mobile LiveTV Newsletter Commodities Speed QnA Blogs Alerts RSS

UScrudetumbledbelow$27abarrelinAsiatodayastheoversaturatedmarketstruggledtocopewithhighinventoriesintheUnitedStatesandanincreasedoutputfromOpec,saidamediareport.BrentcrudeforAprilfellto$30.52abarrel

ThedeclinecamedespitetheweeklyUSDepartmentofEnergyreportshowingUSoilstocksfellabout800,000barrelsfortheweekendingFebruary5,withtradersseeinginventoriesstillathighlevels.

"Whatweareexperiencingintheglobalmarketislargeramountofpressurecomingupfromtheredemptionandthisredemptionpressureisduetothecollateraldamageaidedbyfallincrudeandcommodityprices,"saidDevenChoksey,MD,KRChokseyInvestmentManagers.

"IfthispressuresubsidesandifthispressurecomesdownthenIdonotthinkthatthemarketwouldgodowninhurryorprobablygodownbadly,"headded.

RiseinNPAleadsspooksbanks:Thefallintheindexwasledlargelybybankingsector.MostofthePSUbankshavereportedover40percentjumpinprovisionsrequirement.Asmuchas85percentofthebankingsystem'sweakassetsareinthebooksofpublicsectorbanks(PSBs).Increasingstressisalsovisibleinthequantumofstrategicdebtrestructuringand5/25structuringbeingcarriedoutbybanks.

Crisilbelievesintensifyingassetqualityproblemsatpublicsectorbanks(PSBs)havethepotentialtoimpairtheircreditriskprofilesandnecessitatesignificantlyhighercapitalisationofPSBseitherthroughgovernmentinfusionorrelaxationofregulatorycapitalnorms.

"Overthepast18months,Crisilhaseitherdowngradedorreviseditsoutlookto'Negative'onnineoutofthe25PSBsthatitratesonthebackofexpectationsofworseningassetquality,"saidthereport.

Disappointingearnings:DecemberquarterresultsforIndiaInchavefailedtoimpressDalalStreetatlargeandifearningsdon'tpickupthereisnocaseofabullmarket,sayexperts."Bullmarketsnormallycomewithearningsgrowth.Butifthisisabullmarketcorrection,thenthisisthefirstbullmarketwhichisnotcomingwithearningsgrowth,"saidSridharSivaram,InvestorDirector,EnamHoldings.

"Allbullmarketscomewithearningsgrowth.Bullmarketsnormallycomewithearningsgrowth.But,thishastobetheonlybullmarketwhichcomeswithearningssortofdowngradesthroughout,"headded.Thishastobetheonlybullmarketifthisisabullmarketwhichcomeswithearningssortofdowngradesthroughout.

IfglobaleconomyisgoingthroughastructuralchangeIndiaInc.mightnotbeabletopickthepaceasforecastedbyvariousanalysts.Themarketdoeslookattractiveatcurrentlevels,butwithnoearningsgrowth,marketswillnotpickpace.SivaramisoftheviewthatIdon'tseeearningscomingbackinahurry.Thenextyearconsensusnumberevennowiscloserto18%,andIcannotseethathappening."Wewillcloseto10%,"headded.

"Wewillcontinuetoseeearningsdowngrade.Wecouldhaveanothersharpcorrectionfromcurrentlevels,andIdonotseethemarketsmovingsubstantiallyupformhere,"headded.

StayontopofbusinessnewswithTheEconomicTimesApp.DownloaditNow!