If you have entered in the Indian stock market anywhere during the recent bull run (2003-2007) , you are witness of one of the biggest bull run for Indian stock market. Now you are witnessing the worst performance of the markets. Each day , each week is worse than the previous.
Today NIFTY/Sensex made its biggest single day loss nearly touching November 2005 lows. This week is worst performing week. Reliance touched 990, losing nearly 18% in one day, shivering the entire market and players. Unitech lost 50 % , 30 Rs., in one day.
No analyst/market ,local or global, expert had anticipated such fall, the fall is simply unprecedented , just like the last bull market.
Dow Jones future is in 550 points down, and is not falling further because of the bottom is restricted by the regulators. US market is also expecting worst trading day. UK has gone in recession technically on account of negative GDP data published today.
Anybody who has entered into market during 2005 and holding any scrips of that level is also in loss also.
I recall headlines of magazine/news papers during 2003-04 about the bull run in stocks and gold (also in real estate) at the same time. It was pleasant surprise , as generally gold and equity always meet at cross road , one is rising when other is going down. Now the same thing is being repeated gold and equity both are going down as gold has touched one year low and at 684 USD.
Panic is everywhere, and panic has become so routine that newspapers/television channels have stopped taking note in its headlines.
However, such fanatic fall can be compared with equally fanatic rise in the market. During the bull run I recall the cheers at every 1000 mark achieved by Sensex some time in a single day. Now the fall is also mimicking the trend, but that sounds good. The rise was much more than fair values on account of GREED, and therefore the fall gollowed. But now the fall is also appear much below than the fair values on account of FEAR.
Today will be unforgettable (?!) day in the history of equity market all over the world, unless worse is still to come.
Will talk more in next post.