What a terrible day this is globally for financial markets! It is just panic across the board; Asia has sold off, big markets are down 4-5% across the region.
Europe has opened in terrible fashion with more than 2 per cent cuts out there, the Dow futures is in a mess. It's pointing towards a bit of a selloff out there in the US and the Yen is at 100 to the dollar.
So everywhere you look, there are signs of panic and our markets are reflecting all of that. We are down to 4,650 once again, 4 per cent plus selloff on the Sensex and Nifty, the breadth is horrible.
The only saving grace is that volumes are not very big today. But overall, it’s been a rough session not just for the Indian markets but for global financial markets, one of those black days where everything falls across the board.
What’s the best word to describe it? It’s not about weakness it’s about panic today?
There are signs of panic – just two days into a Fed move, if you have panics like this then you can only understand how nervous sentiment is. Today, everybody is talking about the yen-dollar mess, another wave of yen carry trade unwind etc. The way the Dow futures is moving, it’s telling you that there must be some kind of carnage waiting to happen in the US overnight which is making us even more nervous.
So in the near-term, the fall of the last couple of days perhaps has made us a bit oversold in the near-term. But nobody wants to catch that knife because they fear that on Friday morning there will be more bad news perhaps to reckon with the US market.
So everybody is going back into that shell. So even small attempts at profit booking or buying at lower levels is not seen much by recovery, 4,630 is going to 4,670 and then it is getting slammed back once again. It’s a difficult market; there is no other way to describe it.
There is panic across the world and the way some of these markets have closed and how US is doing right now on the futures it looks like this global panic may not abide just with the day.
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