- With the sharp fall on Wednesday, the Nifty has lost 31.4% from the closing peak of January 14. The only bear crash that was more rapid than this fall was the crash in May 2006 when the markets lost 31% in just 34 days.
- With the Supreme Court order on telecom companies. Banks are likely to remain under pressure. Banks like IndusInd, Kotak Bank and ICICI Bank have substantial exposure to telecom as do SBI and HDFC Bank. The pressure could continue.
- FPIs were net sellers to the tune of Rs.5085 crore while DFIs bought Rs.3636 crore on Wednesday. FIIs have relentlessly sold in the last one month and have sold off more than Rs.62,000 crore in equity and debt put together.
- The carnage in the markets shows no signs of relenting as the Dow again lost over 1000 points and the NASDAQ has also now given up more than 30% from the peak. Europe is down 5% while the SGX Nifty is also trading 2% lower in early trades.
- ONGC at Rs.60 does offer a good chance to enter the oil space at low levels. One thing likely to happen now is that the storage demand will start picking up and will continue till storage peaks. That should help ONGC. Target Rs.75 in ONGC.
- Yesterday we had issued a specific warning about private banks and the telecom order only worsened the situation. Use any bounce to sell out of stocks like ICICI Bank, Axis Bank and IndusInd Bank. It is a sell on rises market for banks.
- Mannapuram has lost nearly 60% from its peak even as its core model still remains robust. We suggest buying Mannapuram at around Rs.88 for targets of Rs.120. We do expect the gold prices to pick up once again.
- Indian markets may remain under pressure as the COVID shows signs of gathering momentum in India. Uses any bounces in the market to sell.
