Well I actually am going overboard on explaining the situation, but with Dr. Subbu going into a freeze mode and waiting a bit more to do anything, the bears are all out to bludgeon whichever bull they lay their sight on. The trickle post the policy has assumed biblical proportion of sell off by the time we hit 1500hrs on the clock. At the time of close, all the heavy weights took cover or were beating down severely. L&T was begging to let go at INR1075, Jaiprakash looks like will hit INR55, BHEL lost all power at INR240 and SAIL lost INR75. Moreover, there was blood over the non-index stocks particularly in the mid/small cap space. There were more than a handful of the respected names or darling of the past few weeks down over 10% each.
Stressful names such as a 3i Infotech are now kissing double digits and soon appear to go the Satyam way. Unfortunately, there will be no government to bail out this time; since this time the government needs a bailout from Team Anna playing truant for almost 6 months.
I believe with the kind of closing we have had today, looks like we are heading for pt. 4600 on the Nifty and stagnate at lower levels then before. For the next six months into the new year we could be very listless. However look at it this way. For entire 2011 calendar we would now in all likelihood close around 25% or so down than at the start of the year. My sense is that for 2012 from the beginning to the end we should close a big positive. Whether we close year 2012 by 15%, 20% or in single digits would be a matter of great debate.
Next week on, we enter a listless and slow and downward journey to the close of the year and into earnings early 2012. Until then, just cannot help.
No comments:
Post a Comment