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Markets Today

Today can be termed as black monday in Indian market.
It was a sharp cut in Indian equities along with global markets through the day as endless credit crisis in the US financial space worries markets globally. Rate sensitives, infrastructure, oil and technology stocks witnessed huge selling pressure followed by midcap and small cap stocks. Benchmark indices crashed severely on huge volumes. But some recovery was seen in last one hour of trade led by auto and banking stocks.

Bears have been playing their role for fifth consecutive day and kept bulls under control. Financial woes are still active in the US financial space. The news of Lehman Brothers filed Chapter 11 bankruptcy has played a big role in today's session, which is one of the most reputed financial firm in the US. This news has walloped Asian and European markets as well. US markets are likely to open lower.

Lehman Brothers says no broker-dealer subsidiaries to be included in bankruptcy filing and the company is exploring sale of its broker-dealer operations. Bank of America and Barclays had showed an interest in the Lehman Brothers but backed out.

Indian benchmark indices were slaughtered severely after this news; the Sensex lost 850 points and the Nifty fell 273 points to hit an intraday low of 13,150.81 and 3955.40, respectively. The Sensex closed with a loss of 469.54 or 3.35% at 13,531.27 and the Nifty fell 155.55 points or 3.68%, to settle at 4072.90.
Some buying in auto and banking stocks has helped markets a bit in last one hour of trade. Both indices recovered nearly 380 points and 117.5 points, respectively. This recovery might be because of Crude, which touched USD 96 to a barrel and China has cut its lending rates by 27 basis Points from September 16, which also cuts its reserve requirements for small banks by 1%.

Global Cues

Stocks plummeted Monday morning as investors contended with the largest financial crisis in years that saw Lehman Brothers file for the biggest bankruptcy in history and Bank of America buy Merrill Lynch in a $50 billion deal.
The Dow Jones industrial average (INDU) lost 240 points, or 2.1%, more than an hour into the session.
The Standard & Poor's 500 (SPX) index lost 1.7% and the Nasdaq composite (COMP) lost 1%.

Lehman Bros have filed for level 11 bankruptcy.

Also crude prices have fallen significantly to 95$/barrel, down almost 5$/barrel amid reports that there is no damage to oil refineries due to hurrricane.

Today's Tip

Markets will claw back soon but experts feel that it hasnt bottomed out yet and expect more fall in coming days. Markets may bottom out around 3900-3800 levels, but these rates provides good buying oppurtunity. I would maintain my previous buying suggestions as they seems to have already bottomed out and could see windfall increase once market sentiments starts to improve. Visit previous posts to look for the stocks to be picked for buying. If one invest strategically and remains patient these share would deliver 33-75% profits in no time. Also watch for Dr. Reddy and Renuka sugar along with previous suggestions.

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